te Use cards, wallets? Important note from RBI on cash withdrawal, this balance hiked to Rs 200,000 | Zee Business

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).

Use cards, wallets? Important note from RBI on cash withdrawal, this balance hiked to Rs 200,000
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. Photo: Reuters

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.

TRENDING NOW

WATCH | Zee Business Live TV streaming below:

"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.

Written By: ZeeBiz WebTeam
Edited By: Harish Dugh
Updated: Wed, Apr 07, 2021
04:39 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
RBI proposes banks with less than 6% net NPAs to declare dividends RBI proposes banks with less than 6% net NPAs to declare dividends
Nearly 97.38% Rs 2,000 notes returned to banking system; Rs 9,330 cr still with public: RBI Nearly 97.38% Rs 2,000 notes returned to banking system; Rs 9,330 cr still with public: RBI
Reserve Bank continues battle against inflation; all eyes on possible rate cut Reserve Bank continues battle against inflation; all eyes on possible rate cut
Exclusive: Centre plans Rs 5,016 crore incentive to promote RuPay, BHIM-UPI Exclusive: Centre plans Rs 5,016 crore incentive to promote RuPay, BHIM-UPI
Inflation outlook likely to be clouded due to volatile food prices: RBI Governor at MPC meeting Inflation outlook likely to be clouded due to volatile food prices: RBI Governor at MPC meeting

By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

x