India preparing direct mobile wallet money transfers - Mobile World Live

India preparing direct mobile wallet money transfers

14 MAR 2017

Mobile wallet providers in India will be able to perform direct money transfers to other providers’ apps without having to go through a traditional bank, following new guidelines reportedly being shaped by the Reserve Bank of India (RBI).

The Economic Times (ET) reported the organisation is set to finalise new framework measures and allow direct transfer between wallets within the next two to three months.

Sending money between apps supplied by different vendors currently requires the use of an intermediary bank with access to the country’s Unified Payment Interface (UPI) – a set of standards introduced by the RBI to enable banks to perform payment transfers to accounts held with other companies.

As part of a wider initiative in the country to expand the reach of digital payments, the RBI is looking to expand access to the interface so wallet providers can increase the range of services they can offer and reach a wider demographic.

The RBI will also set the interchange fees providers can charge each other.

According to the ET’s sources, although the opening of UPIs will mean wallet providers could cut out traditional banks for many transactions, they believe the relationship will likely remain due to much of the money moved being transferred from, or to, an underlying bank account.

Author

Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

Read more

Related

Tags