Representatives from India’s payment banking sector met with regulators to voice opposition to forthcoming mobile wallet interoperability guidelines, The Economic Times (ET) reported.
Citing unnamed sources, the publication said executives from institutions providing payment bank services met with the Reserve Bank of India (RBI) to discuss upcoming rule changes, which allow seamless cash transfers between different brands of mobile wallet.
After the introduction of the interoperability, the representatives argued, mobile wallet providers would be able to supply similar services to payment banks without being subject to the same regulatory scrutiny.
Although the mobile wallets set to be included adhere to international Know Your Customer rules, the payment banks argue other regulations imposed on them are less strict.
Payment banks supply accounts aimed primarily at those making small deposits and transfers. They were introduced as part of a government initiative to increase financial inclusion and reduce the usage of physical cash.
The institutions are licensed by the RBI and have a number of restrictions placed on them in terms of the types of services they can provide, and must also follow strict operational rules.
Failure to meet requirements leads to a service suspension and fine – as Bharti Airtel found out earlier this year.
A number of companies provide payment bank services, mostly in the mobile sector. Some also have mobile wallet services and actively support interoperability, ET noted.