Indian central bank paves way for digital wallet interoperability

Indian central bank paves way for digital wallet interoperability

Paytm users will soon be able to send money to MobiKwik digital wallets under new interoperability rules from the Reserve Bank of India.

Within six months, prepaid payment instruments (PPIs) that comply with KYC norms are expected to get access to the government-backed Unified Payments Interface (UPI).

This will give the likes of Paytm the interoperability already enjoyed by banks and simplify digital payments for Indians inundated with a raft of providers.

As the government pushes digitisation, banning small value notes, P2P payments providers are flourishing in India, with the likes of Google and WhatsApp joining local players.

The RBI says the move is designed to encourage "competition and innovation" s well as strengthen "safety and security".

While the move could squeeze out some smaller providers, most digital wallet outfits welcomed the move. “This helps us widen our reach and brings enormous value to our business," says Bipin Preet Singh, CEO, MobiKwik.

Comments: (1)

A Finextra member
A Finextra member 05 October, 2017, 19:31Be the first to give this comment the thumbs up 0 likes

I wouldn't be at all surprised if in a few years there will be fewer "unbankables" in India then Europe/US; and if within a decade India becomes a cashless society.