RBI announces new initiatives for digital payments, including the ability to use your mobile wallet as a debit card.

The Reserve Bank of India (RBI) made important announcements on Wednesday with the goal of boosting digital payments in the country. These announcements could turn your mobile wallets into debit card-like facilities.

When announcing its bi-monthly monetary policy, the central bank made several significant changes to the digital payment system. Prepaid payment instruments (PPIs) and mobile wallets

Mobile wallets and PPIs, such as Google Pay, PhonePe, Paytm, PayU, and Amazon Pay, will be required to implement this functionality, which improves interoperability.

[pt_view id=”baa39696xe”]

Furthermore, mobile wallets, Fintech firms, and PPIs will be able to use the RTGS (Real-time Gross Settlement) and NEFT (National Electronic Funds Transfer) services that are currently only available to banks. The RBI has expanded the reach of RTGS and NEFT, as well as the interoperability function, in its second initiative to improve digital payments in India.

Mobile wallets and PPIs can act as debit cards. The RBI has also made withdrawals possible for users of mobile wallets and PPIs. With the initiatives announced today, users will be able to pass and withdraw money from any white label ATM.

The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 – 04.04.2021

The central bank, on the other hand, has made a complete KYC (Know Your Customer) procedure mandatory. Furthermore, the PPI transfer cap has been raised from Rs 1 lakh to Rs 2 lakh.