Money & Bankin

RBI proposes mandatory interoperability of full KYC prepaid instruments

Our Bureau Mumbai | Updated on April 07, 2021

Increase in Account Limit to ₹2 lakh

The Reserve Bank of India has proposed to make interoperability mandatory for full-KYC prepaid instruments (PPIs) and all payment acceptance infrastructure.

To incentivise the migration of PPIs to full-KYC, it is proposed to increase the current limit on the outstanding balance in such PPIs from ₹1 lakh to ₹2 lakh, RBI Governor Shaktikanta Das said on Wednesday.

The RBI had issued guidelines in October 2018 for the adoption of interoperability voluntarily for full-KYC PPIs. Das noted the migration towards interoperability has not been significant.

Further, as a confidence-boosting measure and to bring uniformity across PPI issuers, it is now proposed to allow cash withdrawals for full KYC PPIs of non-bank PPI issuers.

“This measure, in conjunction with the mandate for interoperability, will boost migration to full-KYC PPIs and would also complement the acceptance infrastructure in Tier III to VI centres,” Das said.

At present, cash withdrawal is allowed only for full-KYC PPIs issued by banks.

Published on April 07, 2021

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