The Reserve bank of India has finally issued revised guidelines on for prepaid payment instruments (PPI) and said that they will be interoperable. Here are some the broad changes in the wallet guidelines. Net worth requirements: All companies which are trying to get a wallet licence have to have a minimum net worth of Rs 5 crore which needs to be maintained for three years at all times, following which they need to have a net worth of Rs 15 crore at all times. Existing wallet companies need to maintain Rs 15 crore by March 31, 2020, following which they need to maintain the net worth at all times. The draft guidelines stated that wallet companies will have to have a minimum net worth of Rs 25 crore, a sharp turn from the earlier regulatory norms for wallets included a minimum paid-up capital needed of Rs 5 crore and a minimum net worth of Rs 1 crore. The net worth will consist of: -Paid up equity capital -Preference shares which are compulsorily convertible into equity capital -Free reserves -Balance in share premium account – Capital reserves which will include surplus arising out of sale proceeds of assets. This will not include reserves created by revaluation of assets which are adjusted for accumulated loss balance, book value of intangible assets and deferred revenue. KYC Norms: The RBI said that Know Your Customer (KYC), Anti-Money Laundering (AML), Combating Financing of Terrorism (CFT) guidelines will apply to wallets. Provisions of Prevention of Money Laundering Act,…
