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    Here's how you can transfer funds from mobile wallets to bank accounts

    Here's how you can transfer funds from mobile wallets to bank accounts

    Here's how you can transfer funds from mobile wallets to bank accounts
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    By CNBC-TV18  IST (Published)

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    Interoperability allows compatibility between payment systems, enabling users to either transfer funds between wallets as well as between their wallets and bank accounts.

    The Reserve Bank of India (RBI) on Tuesday laid down guidelines that would allow an individual to seamlessly transfer money from a mobile payment wallet to their bank account.
    “The rules on interoperability of prepaid payment instruments (PPIs) do not force PPIs such as wallets to permit such transfers; instead, these guidelines are for “participating PPI issuers, who choose to adopt interoperability,” the RBI said.
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    Interoperability allows compatibility between payment systems, enabling users to either transfer funds between wallets as well as between their wallets and bank accounts.
    Here’s how the transfer will happen:
    • RBI said that interoperability between wallets can be ensured through Unified Payments Interface (UPI).
    • Where pre-paid payment instruments (PPIs) are issued in the form of cards, the cards shall be affiliated to the authorised card network.
    • PPI issuers operating exclusively in specific segments like meal, gift and mass transport system may also implement interoperability, the RBI said.
    • Card networks are allowed to on-board PPI issuers to join their network. Non-bank PPI issuers are permitted to participate as members / associate members of authorised card networks.
    • PPI issuers shall act as Payment System Providers (PSP) in the UPI. National Payments Corporation of India (NPCI) will issue handle to the PPI issuers as per its policy / guidelines taking risk management aspects into consideration. Non-bank PPI issuers are also allowed to participate in the same.
    • PPI holders shall be on-boarded for UPI by their own PPI issuer only. PPI issuers shall only link their customer wallets to the handle issued to them. PPI issuers as PSP shall not on-board customers of any bank or any other PPI issuer.
    • Authentication will be completed by the PPI holder as per his / her existing wallet credentials. In other words, a transaction will be pre-approved before it reaches the UPI.
    • The interoperability shall be facilitated to all KYC compliant PPI accounts.
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