The Reserve Bank of India (RBI) has issued a circular stating that all licensed prepaid payment instruments (PPIs) such as Paytm, PhonePe and Mobikwik should become interoperable from FY2023.
According to the new rule, starting April 2022, a mobile wallet user who has fulfilled all know-your-customer (KYC) norms should be able to send and receive money from different mobile wallets. For card-based PPIs, this will be achieved via card network interoperability and for e-wallets through the unified payments interface (UPI).
Meanwhile, PPIs for mass transit systems (PPI-MTS) will remain exempted from interoperability while Gift PPI issuers have the option to offer interoperability.
Further, RBI has also said that mobile wallets can now be used for cash withdrawals up to Rs 2,000. The wallet limit has also been increased from Rs 100,000 to Rs 200,000.