Digital Wallet Use UPI CHECK THIS NEWS
New Delhi: The Reserve Bank of India (RBI) interoperability rules will enable Digital Wallet users to transfer money between pocket. Prepaid Payment Instruments (PPI) who intend to adopt interoperability will soon allow users to make money transactions between Wallet. It can be noted that interoperability allows consistency between payment system.
According to the RBI guidelines, the interaction of all KYC-Compliance PPI was to be enabled in three phases - (i) the interoperability of PPI released as a pocket through the integrated payment interface (UPI), (ii) the weld and bank accounts Interactivity between the UPI, and (iii) Interaction with the card network for the PPI released as the card.
Once interactivity has been implemented, users will not only be able to make money transfer between wallet but also have the option of transferring money from wallet to bank accounts. According to the RBI, when PPIs are issued in the wallet form, the PPI will be enabled through Interoperability Integrated Payment Interface (UPI). In cases where PPIs are issued in the form of cards, the cards will be affiliated to the authorized card network.
It is worth mentioning that the UPI was launched by the National Payment Corporation in 2016. This enables instant fund transfer between the two bank accounts through the mobile platform without the need for any details of the beneficiary's bank account. Transactions are authorized by KYC, which is a process through which financial institutions verify their customers.
It has been stated in the instructions issued by the central bank, "In the later stages, the interaction between the wallet and the bank accounts will be enabled through the UPI. Similarly, the interoperability for the PPI issued in the form of the card will also be enabled. "
For those who are not aware, interactivity is a technical compatibility that enables payment systems to be used as a combination of other payment systems. This allows PPI issuers, system providers and system participants to participate in various systems in order to perform, process, clear and manage payment transactions without participating in various systems.
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