RBI issues advisory on E-wallets

Mumbai, Mar 31 (KNN) The Reserve Bank of India (RBI) has told the users of Pre-paid Payment Instruments (PPIs), including mobile and electronic wallets, that only non-bank entities authorised by it under the Payment and Settlement Systems Act, 2007 can issue PPI wallets for purchase of goods and services from third parties and money transfer within India.

In an advisory, RBI said, “Only permitted banks can issue PPI wallets which in addition to purchase of goods and services from third parties and money transfer within India, can also be used for withdrawing cash. An updated list of entities is available on the Reserve Bank’s website.”

The central bank said that the public should access RBI website for the list of such banks and non-bank entities issuing e-wallets and prepaid cards.

According to the central bank, intermediaries such as aggregators and payment gateways, which facilitate payment services, though not authorised by the RBI under the Act, are however required to route their transactions only through a nodal account opened with a bank under the Reserve Bank of India’s guidelines of November 24, 2009.