Use cards, wallets? Important note from RBI on cash withdrawal, this balance hiked to Rs 200,000
To promote optimal utilisation of payment instruments (like cards, wallets etc.), the Reserve Bank of India has today proposed two measures — mandatory interoperability and cash withdrawal for full-KYC PPIs (Prepaid Payment Instruments).
To promote optimal utilisation of payment instruments (like cards, wallets etc.), the Reserve Bank of India has today proposed two measures — mandatory interoperability and cash withdrawal for full-KYC PPIs (Prepaid Payment Instruments). The central bank is of the opinion that the move will help them make full-KYC PPIs more user-friendly.
The RBI proposed about the mandatory inoperability for full-KYC PPIs in its Statement on Developmental and Regulatory Policies issued today. To incentivise the migration of PPIs to full-KYC, the RBI also proposed to increase the limit of outstanding balance in such PPIs from the existing level of Rs 1 lakh to Rs 2 lakh.
The RBI also proposed to allow the facility of cash withdrawal, subject to a limit, for full-KYC PPIs of non-bank PPI issuers. The move is expected to give a boost to migration to full-KYC PPIs and would also complement the acceptance infrastructure in Tier III to VI centres.
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"To promote optimal utilisation of payment instruments (like cards, wallets etc.), and given the constraint of scarce acceptance infrastructure (like PoS devices, ATMs, QR codes, bill-payment touch points, etc.), Reserve Bank of India has been stressing on the benefits of interoperability amongst the issuing and acquiring entities alike, banks or non-banks," the RBI Statement on Developmental and Regulatory Policies read.
The RBI Statement on Developmental and REgulatory Policies went on to add that the Master Direction on Issuance and Operation of PPIs dated October 11, 2017 laid down a road-map for a phased implementation of interoperability amongst PPIs issued by banks and non-banks. Thereafter, the guidelines issued in October 2018 enabled interoperability, albeit on a voluntary basis, insofar as the PPIs were full-KYC (they met all Know Your Customer requirements).
Presently, cash withdrawal is allowed only for full-KYC PPIs issued by banks and this facility is available through ATMs and PoS terminals.
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