Payments banks offer more options

While a wallet is convenient, payments bank offers interest on deposits and ATM facility

Bipin Preet Singh, the founder of MobiKwik, no longer feels that his company should become a payments bank. He believes the key offerings between the two are now similar after the Reserve Bank of India (RBI) came up with new guidelines for mobile wallets.

In future, wallet users will be allowed to transfer money from one wallet to another, making them interoperable like a bank. The maximum amount that a person can hold in the wallet is also the same as in a payments bank – Rs 1 lakh. Wallet players, however, will also need to do a KYC (know your