Your mobile wallet could act as debit card now, RBI unveils new initiatives for digital payments

With an aim to boost the digital payments in the country, the Reserve Bank of India (RBI) on Wednesday has made and important announcements that could transform your mobile wallets into debit card like facilities.

The central bank, while announcing its bi-monthly monetary policy, has made some important changes to the digital payment system. Mobile wallets and prepaid payment instruments (PPIs) will have mandatory interoperability feature, which means a mobile wallet or PPI user can now transfer money from one wallet to any other wallet.

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Mobile wallets and PPIs such as Google Pay, PhonePe, Paytm, PayU, Amazon Pay among other will have to install this feature that boosts interoperation between them.

Moreover, RTGS (Real-time Gross Settlement) and NEFT (National Electronic Funds Transfer) facility that only bank avails, will now be made available to mobile wallets, Fintech companies and PPIs too. The RBI, in its second such initiative to boost digital payments in India, has increased the ambit of RTGS and NEFT along interoperability feature.

RTGS और NEFT के लिए बैंक की जरूरत नहीं! मोबाइल वॉलेट बन जाएगा ATM, जानिए कैसे?#MobileWallet #RBIPolicy #RBIMonetaryPolicy @anuragshah_ pic.twitter.com/7rE1Iprj0P

— Zee Business (@ZeeBusiness) April 7, 2021

Besides, the mobile wallets and PPIs will also act as a debit card. The RBI has also allowed withdrawal facility to mobile wallets and PPIs users. With these initiatives that unveiled today, a user can transfer and withdraw money and through any white label ATMs.

The central bank, however, has made a complete KYC (Know Your Customer) mandatory. Moreover, it has also increased the PPI transfer limit to Rs 2 lakh from Rs 1 lakh.