The Reserve Bank of India has increased the maximum amount outstanding in respect of full-KYC PPIs (KYC-compliant PPIs) from Rs. 1 lakh to Rs. 2 lakh. Apart from this, The Reserve Bank of India (RBI) has mandated that all prepaid payment instruments (PPIs) or mobile wallets such as Paytm, PhonePe and Mobikwik are fully KYC-compliant be made interoperable by March 31, 2022.
The PPI issuers will have to provide interoperability through authorised card networks (for PPIs in the form of cards) and UPI (for PPIs in the form of electronic wallets). Interoperability shall be mandatory on the acceptance side as well. PPIs for Mass Transit Systems (PPI-MTS) shall remain exempted from interoperability. It will be optional for Gift PPI issuers to have the option of interoperability.
RBI has also permitted cash withdrawal from Full-KYC PPIs of Non-Bank PPI Issuers. The condition on such cash withdrawal shall be:
- Maximum limit of Rs. 2,000 per transaction with an overall limit of Rs. 10,000 per month per PPI.
- All cash withdrawal transactions performed using a card/wallet shall be authenticated by an Additional Factor of Authentication (AFA) / PIN;
- RBI has increased the limit of cash withdrawal from Points of Sale (PoS) terminals using debit cards and open system prepaid cards (issued by banks) to Rs 2000 per transaction within an overall monthly limit of Rs. 10,000 across all locations (Tier 1 to 6 centres). Earlier this limit was Rs 1000 for Tier 1 and 2 cities while Rs 2000 for Tier 3 to 6 cities.