The Reserve Bank of India (RBI) has issued the guidelines for interoperability among different kinds of prepaid instruments, including e-wallets, meal vouchers and gift vouchers.
The Reserve Bank of India (RBI) has issued the guidelines for interoperability among different kinds of prepaid instruments (PPIs), including e-wallets, meal vouchers and gift vouchers.
As per the central bank, interoperability is the technical compatibility that enables a payment system to be used in conjunction with other payment systems. Interoperability allows PPI Issuers, System Providers and System Participants in different systems to undertake, clear and settle payment transactions across systems without participating in multiple systems.
"...interoperability of all KYC-compliant PPIs was to be enabled in three phases - (i) interoperability of PPIs issued in the form of wallets through Unified Payments Interface (UPI), (ii) interoperability between wallets and bank accounts through UPI, and (iii) interoperability for PPIs issued in the form of cards through card networks," said RBI in a press note.
"Furthermore, all participating PPI issuers shall be guided by the technical specifications/standards/requirements for achieving interoperability through UPI and card networks as per the requirements of National Payments Corporation of India (NPCI) and the respective card networks."
It said NPCI and card networks shall facilitate participation by PPI issuers in UPI and card networks.
The RBI, however, has not provided any timeline for interoperability to be operable. But banking sources told Businessline that the first round of interoperability could emerge in two months.
Bipin Preet Singh, founder and Chief Executive Officer of MobiKwik, told BusinessLine, “The guidelines give a huge credibility to wallets — that wallets are now equal participants in the payment ecosystem in India.”
Source: Businessline and RBI