Soon you will be able to transfer your Paytm wallet money to Mobikwik and vice versa as RBI has finally released the guidelines for interoperability.
The decision is a revolutionary step by the banking regulator as customers across the e-wallet operators such as Paytm, Mobikwik, Oxigen, Jio Money, Freecharge and Ola Money can transfer their wallet balance to each other.
The inter-operability amongst digital wallets and between bank account through the Unified Payments Interface (UPI) system will encourage users for a frequent digital transaction.
According to the latest notification by RBI, the operational guidelines will facilitate payments to all KYC (know-your-customer) compliant prepaid payment instruments (PPIs).
The inter-operability would be achieved in three phase i.e. inter-operability of PPIs issued in the form of wallets through UPI, between wallets and bank accounts through UPI, and interoperability for PPIs issued in the form of cards through card networks.
Further, RBI also clarified that PPI issuers operating exclusively in specific segments like Meal, Gift, and MTS may also implement interoperability.
Besides, the new rules will enable wallets to issue debit cards through UPI and card networks such as MasterCard, Visa, and RuPay.
In October last year, RBI had directed digital payments companies to ensure that the payment instruments issued must adhere to know-your-customer (KYC) norms.
This has been a good news for users as it gives them a sense of independence to switch balance from one wallet to another. Many users have to go through the hard time when they have balance in one wallet while product or service availed (running promotions/offers) requires payment through some other.
While all leading mobile wallet operators have welcomed the move, the announcement won’t be going to impact the status quo in any big way. Usages of the consumer-facing wallets are largely dependent on its depth within the merchant ecosystem.
And, Paytm certainly has a lead over others with its strong presence amongst all retail formats. Nevertheless, it’s interesting to observe how this notification brings change in the status quo for second tier wallet operators.