The government of India’s demonetisation drive has come as a boost for mobile wallet players like Paytm, MobiKwik, FreeCharge and others. Now RBI has increased the monthly wallet limit for users to Rs 20,000 from the earlier Rs 10,000 and to Rs 50,000 for merchants. The move is being hailed by wallet players as one that will help out users and sellers who have adopted these wallets due to the demonetisation move.
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In a circular dated November 22, RBI has said it will increase “enhancement in issuance limits for Pre-Paid Payment Instruments (PPIs) in India,” along with special measures for merchants. While earlier the limit for mobile wallets was Rs 10,000 for non-eKYC compliant account, it has now been increased to Rs 20,000. RBI’s circular says “The total value of reloads during any given month shall also not exceed ₹ 20,000,” which means per month people can upload up to Rs 20,000 in their mobile wallets.
For merchants who accept mobile wallets or Pre-Paid Payment Instruments (PPIs) for goods and services, RBI has also made some changes. First “merchants shall give a self-declaration in respect of their merchant status and details of their own bank account, which shall be kept on record by the issuer.” RBI says “PPIs can be issued to such willing merchants only after due verification and validation of their bank account details.” RBI says inflow of funds to these PPIs of merchants is only allowed via sale transactions.
Funds transfer from such PPIs are permitted only to the merchant’s own linked bank account and up to an amount of Rs 50,000 per month without any limit per transaction, adds the RBI guidelines. RBI says the measures are shall be applicable till December 30, 2016, subject to review. RBI’s move is being hailed by mobile wallet players.
“RBI’s steps will accelerate the adoption of mobile wallets in the country and ease the challenges being faced by the common man and local shopkeepers due to cash crunch. We support RBI and the government in their endeavour to transform India into a clean economy, free from black money and corruption,” said Upasana Taku, Co-founder, MobiKwik in a statement.
“We have heard the challenges regarding wallet limit, first hand from our users, especially sellers, and some of those would exhaust their Rs 10,000 limit within a week and then struggle with the woes of dealing in cash in these times. We are certain that this move will lead to remarkable growth in usage and adoption of mobile wallets, which is the need of the hour,” she added.
“This doubling of limits will have an immensely beneficial impact for users and small merchants. Given the quantum jump in digital wallets usage in recent days, this increase in limits makes it easier for both users and merchants to shift more of their cash transactions to digital wallets,” said Govind Rajan CEO FreeCharge in a statement.
Paytm’s founder and CEO Vijay Shekhar also tweeted about the move. He said, “Congratulations India. Great efforts by @IAMAIForum ‘s PCI under leadership of @SuryaNavin and such awesome updated guidance by @RBI.”
Mobile wallets like Paytm and MobiKwik are reporting an increase in app traffic, downloads and usage over the last few days thanks to demonetisation.
For all the latest Tech News, download Indian Express App nowFirst Published on: November 23, 2016 10:27 am