From FY23, the Reserve Bank of India (RBI) has released a circular requesting that all approved prepaid payment instruments (PPIs) or mobile wallets, such as PhonePe, Paytm, Google Pay, and Mobikwik, be interoperable.
This means that starting in April 2022, a completely vetted mobile wallet user who has met all KYC requirements will be able to send and receive money from multiple mobile wallets.
The central bank stated in a circular that wallet-based prepaid payment instruments or PPIs will have to allow interoperability through UPI, while card-based prepaid payment instruments will have to enable it through card networks.
By March of next year, payment wallets and prepaid cards will be able to withdraw cash from ATMs, micro-ATMs, and qualifying Point of Sale terminals.
"Any PPI issuer offering this facility [interoperability] shall put in place proper customer redressal mechanisms. Complaints in this regard shall fall under the ambit of the respective ombudsman schemes and instructions on limiting liability of customers," the RBI said in its circular.
Prepaid payment instruments for mass transit systems are excluded from interoperability, according to the RBI's latest circular, and gift prepaid payment instruments have the option to provide interoperability.