Soon You Will Be Able To Transfer Money Among Different Mobile Wallets
We all know the benefits of utilizing Mobile wallets for making exchanges carefully. Mobile wallets organizations are pushing their use forcefully as well, yet one thing which was constantly bothered us about the Mobile wallets is their interchangeability (compatibility with each other).
RBI (Reserve Bank of India) is now planning to open up the UPI (Unified Payment Interface) framework for these digital wallets. This will make the digital wallets interoperable with each other and will thus allow you to send payments to anyone irrespective to the mobile wallets of their choice.
According to ET, RBI is expected to issue the related guidelines covering interoperability, and KYC (Know Your Customer) shortly for digital wallets companies.
The central bank of the country will also decide about the interchange fees between the wallets for accessing the UPI framework. Currently, the digital wallets can access the UPI framework only via their partner banks for facilitating bank-to-bank transfers. But with access to UPI framework, which should happen within about 2-3 months, the mobile wallets will be able to do bank-to-bank transfers on their own.
“The opening up of the UPI framework and, in turn, the permission to allow interoperability between wallets is something the RBI is looking into very seriously and should be able to activate in 2-3 months,” said a person familiar to the matter.
With UPI access in their kitty, the digital wallet players will get less dependent on the banks, but they will still maintain their partnerships with them as the money transfer and transactions will still occur on underlying bank accounts.
“The bank’s role will continue since these wallet players will also need to hold on to their partnerships for escrow management, settlement and reconciliation, grievance redressal, etc,” said Ritesh Pai, Country Head, Digital Banking, Yes Bank.
This will not only allow you to send money from your Freecharge account to a friend using Paytm, or MobiKwik, but will also convince a greater number of people to use mobile wallets/UPI for making payments. It will also help mobile wallets grow their business by strengthening their business model.