The RBI also increased the prepaid payment instrument account limit to Rs 2 lakh per individual.
The Reserve Bank of India would now allow RTGS and NEFT connectivity with non-bank payment system operators, paving way for UPI interoperability. The move could potentially benefit users of payment wallets such as Paytm, PhonePe, and others. Along with this, the RBI also increased the prepaid payment instrument account limit to Rs 2 lakh per individual from Rs 1 lakh earlier. “This facility is expected to minimise settlement risk in the financial system and enhance the reach of digital financial services to all user segments,” RBI Governor Shaktikanta Das said after the bi-monthly Monetary Policy Committee meeting.
Centralised payment systems such as RTGS and NEFT, operated by the RBI, was so far restricted to only banks with a few exceptions. RBI today announced that it is proposing to enable non-bank payment systems like PPIs, card networks, wide-level ATM operators, among others to take direct membership in the central bank run RTGS and NEFT.
RBI had earlier in October 2018 issued guidelines for adoption of inter-operability on a voluntary basis for full KYC PPIs. “As migration toward inter-operability has not been significant, it is now proposed to make inter-operability mandatory for full KYC PPIs and for all payment acceptance infrastructure,” the RBI Governor said. To incentivize the same, RBI will increase the outstanding limit of such PPIs to Rs 2 lakh from the Rs 1 lakh limit earlier. The central bank said that it will issue a separate circular for the changes announced.