The Reserve Bank of India has proposed to make interoperability mandatory for full-KYC prepaid instruments (PPIs) and all payment acceptance infrastructure.
To incentivise the migration of PPIs to full-KYC, it is proposed to increase the current limit on the outstanding balance in such PPIs from ₹1 lakh to ₹2 lakh, RBI Governor Shaktikanta Das said on Wednesday.
The RBI had issued guidelines in October 2018 for the adoption of interoperability voluntarily for full-KYC PPIs. Das noted the migration towards interoperability has not been significant.
Further, as a confidence-boosting measure and to bring uniformity across PPI issuers, it is now proposed to allow cash withdrawals for full KYC PPIs of non-bank PPI issuers.
“This measure, in conjunction with the mandate for interoperability, will boost migration to full-KYC PPIs and would also complement the acceptance infrastructure in Tier III to VI centres,” Das said.
At present, cash withdrawal is allowed only for full-KYC PPIs issued by banks.