NEW DELHI: The Reserve Bank has made it clear that it will now make it mandatory for prepaid payments instruments issuers (such as mobile wallets) to adopt interoperability, a move that will let their customers transact with others after doing a full-KYC (know your customer).
It will also double the maximum balance that a single account can hold in a payments bank to Rs 2 lakh at the end of the day. RBI Governor Shaktikanta Das said in a post-meeting press briefing that PPIs had been given the option to become interoperable, with customers of one company being able to send funds to those of other PPIs or banks, in 2018 once a full KYC was done.
“Despite the passage of two years, migration towards full-KYC PPIs, and therefore interoperability, is not significant. It is, therefore, proposed to make interoperability mandatory for full-KYC PPIs and for all acceptance infrastructure,” Das pointed out. In order to incentivise this migration, it is proposed to increase the limit of outstanding balance in such PPIs, he noted.
Das also said that the RBI has been stressing on interoperability to optimally utilise such instruments given the constraint of scarce acceptance infrastructure like point of sale devices, ATMs, QR codes, bill-payment touch points. Necessary instructions in this regard will be issued separately, Das said. The RBI has also decided to permit the facility of cash withdrawal, subject to a limit, for full-KYC PPIs of non-bank PPI issuers as well as a confidence building measure.
RBI relief to ECB borrowers
The RBI has said that unutilised External Commercial Borrowing (ECB) proceeds drawn down before March 1, 2020, can be parked in term deposits with banks in India prospectively up to March 1, 2022. Under the extant norms, borrowers are allowed to place ECB proceeds in term deposits with banks in India for a maximum period of 12 months only.
Moratoriums not needed yet
Amid an increase in localised lockdowns across the country, Reserve Bank Governor Shaktikanta Das on Wednesday said there is no need for a loan repayments moratorium at present, stating that businesses are better prepared to face the situation. He, however, added that he could not give indications on the future course of actions that may be taken.