RBI: Mandatory interoperability for prepaid payments from FY23, increases limit to Rs2 lakh for full-KYC

The Reserve Bank of India (RBI) makes interoperability mandatory for Prepaid Payment Instruments (PPIs). The central bank has advised banks and companies to enable interoperability by March 31, 2022. That means interoperability for mobile wallets will be in effect from the starting of the financial year FY23.

In the latest directions, RBI said that it shall be mandatory for PPI issuers to give the holders of full-KYC PPIs (KYC-compliant PPIs) interoperability through authorised card networks (for PPIs in the form of cards) and UPI (for PPIs in the form of electronic wallets).

Also, interoperability shall be mandatory on the acceptance side as well.

Further, PPIs for Mass Transit Systems (PPI-MTS) shall remain exempted from interoperability while Gift PPI issuers have the option to offer interoperability.

Moreover, RBI has increased the maximum amount outstanding in respect of full-KYC PPIs (KYC-compliant PPIs) to Rs2 lakh from Rs1 lakh.

In the previous master circular, RBI had advised that any PPI issuer offering this facility shall put in place proper customer redressal mechanisms. Complaints in this regard shall fall under the ambit of the respective ombudsmen schemes and instructions on limiting the liability of customers. All cash withdrawal transactions performed using a card/wallet shall be authenticated by an Additional Factor of Authentication (AFA) / PIN. 

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( With inputs from indiainfoline)