Cash is back in India with the interoperability of mobile wallets

Mobile wallets are just one of the several prepaid payment instruments available in India

Mobile wallets have made life more comfortable. But what could make them better would be the ability to transfer money from one mobile wallet to another (i.e. interoperability).

Mobile wallets are just one of the several prepaid payment instruments (PPIs) available in India. PPIs enable the purchase of products, facilities, financial services, payment facilities, etc.

Proposed road map

The proposed interoperability was welcomed enthusiastically, but it will apply only to KYC-compliant wallets. The central bank aims to offer interoperability in three phases.

In the first phase, wallet issuers (i.e. banks and non-banks) will make all KYC-compliant wallets interoperable using the Unified Payments Interface (UPI)