RBI has allowed the transfer of funds facilities between different Mobile eWallets. Now any of the mobile ewallets users like PayTm, Mobikwik, Oxigen, Freecharge etc may transfer of money between themselves i.e. from PayTm to freecharge or Oxigen or Mobikwik or Jio Money. Earlier it was restricted by RBI under Prepaid Instruments Guidelines or PPI’s.
RBI has announced to open the UPI (Unified Payment Interface) framework for these digital wallets. Due to this interoperablility will be operational and digital wallets may be able to transfer the funds between themselves. This will allow you to send payments to anyone irrespective to the mobile wallets of their choice.
RBI has announced that [box type=”info” align=”aligncenter” ]Inter-operability amongst KYC compliant PPIs shall be implemented within six months of the date of issuance of the revised master directions, which will be issued within a week, i.e. by October 11, 2017[/box]
Why this is bad for Banks ?
This new initiative once get operational, Banks will start facing the heat as there is a fear of loosing the float money of customer i.e. Lower balance in Saving or Current account of customer. Other reason may be :
There is naturally a tougher time ahead for nationalized banks if they don’t focus and revive their Digital banking strategies.
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