Digital wallet companies wait for RBI norms

Digital wallet companies wait for RBI norms


MUMBAI: As RBI is expected to release the new guidelines for the prepaid payments instruments (PPIs) or digital wallets in a week or two, the industry is waiting on its toes.

Industry insiders ET spoke to said while the central bank is expected to open up fresh applications for PPI licences, they were keeping an eye out for know-your-customer norms and cyber insurance for wallets.

The RBI had last issued a draft master circular on March 20. Top executives of the payments industry met the regulator and voiced their responses to the suggestions and are now waiting for the final move from the regulator.

“We have already voiced our concerns and explained our stand on the draft norms,“ said a top executive with a payment company. While a clutch of entities like Amazon and Pine Labs recently got PPI licences, they had applied before the applications were closed. Multiple payment players are waiting for the regulator to open applications for new licences.The industry is also keeping an eye out for stringent KYC.

“A full KYC for all wallet holders will be a difficult proposition for payments companies as it would drive up their costs since the wallet balance limit is low they could consider partial KYC,“ said another chief executive of a wallet company.

While there was no direct mention of insurance cover for wallets, the industry executives are also keeping an eye out for any such references. “We had explained our stand on insurance that the premium against securing the entire corpus with PPIs will be too expensive for payment players, and is not in line with the threats to the industry,“ said one of the persons quoted above.


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