The Reserve Bank of India has finally issued guidelines for interoperability of wallets, one year, eight months and seven days after the deadline of February 9th 2017 set by the Watal Committee for this task lapsed. The guidelines aren't wallet friendly either: when they first launched, wallets were meant to be an alternative to banks, essentially, stores of small amounts of money required for small transactions. With these guidelines, wallets are now required to use UPI (Unified Payments Interface) for interoperability, and required to work with a sponsor bank for settlement. It's essentially the end of an era in digital payments: the market pressure created by interoperability will force wallets to participate, and the dependency on banks is built into the guidelines. Wallets will no longer be independent of banks. Remember that independent payments services were also largely rendered defunct when the RBI came out with a bank-friendly policy for mobile banking. The guidelines for interoperability The central bank is looking at enabling three key phases and has set out guidelines for these: interoperability between wallets through UPI, between wallets and bank accounts through UPI and for PPI cards via card networks. 1. Compliance for PPI cards and wallets: Which users can transfer money? Interoperability will only be facilitated for KYC compliant accounts. Since Aadhaar authentication is no longer valid for private parties, PPIs will have to undertake other forms of KYC. How will the transfer be enabled? This will be enabled through UPI if the PPI is a digital…
- MediaNama Daily: Caught red-handed March 25, 2023
- US govt warns businesses of ‘AI deception’, calls for mitigating risks before launching AI products March 24, 2023
- Here’s what TikTok’s CEO said in his U.S. Congressional Committee Hearing March 24, 2023
- Cyberabad police bust a gang selling personal data of 16.8 Crore citizens March 24, 2023
- Explained: What is Namma Yatri app and why is it joining ONDC March 24, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
Amazon announced that it will integrate its logistics network and SmartCommerce services with the Open Network for Digital Commerce (ONDC).
India's smartphone operating system BharOS has received much buzz in the media lately, but does it really merit this attention?
After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples
In the case of the ‘deemed consent' provision in the draft data protection law, brevity comes at the cost of clarity and user protection
The regulatory ambivalence around an instrument so essential to facilitate data exchange – the CM framework – is disconcerting for several reasons.
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...