Now a days there are many prepaid instruments are launching in market with increase in digital transactions. Some of the famous prepaid instruments are E-Wallet and Payment Application for Mobile Users.
Now question is What is E-Wallet : Mobile E-Wallet in simple words is a virtual wallet in which you can keep money with the help of merchant service provider and use this money for selected kind of services like Mobile Recharge, Online Movie Booking, Online Bill payment. While Some Companies provides you facility to make payment to third party or merchant store offline. There are many companies in India who have already launched this type of wallet like Paytm, Airtel Money, Bhim App etc.
If We categories the wallet on the basis of facilities, there are four types of wallets prescribed in India as per RBI Guidelines :
- Open Wallet
- Semi Open Wallet
- Semi Closed Wallet
- Closed Wallet
Open Wallet : Open wallet facilitates customers to keep money in this wallet and use this money anytime and anywhere i.e. by using this kind of wallet you can make payment online for any purchase of goods and services and also you can withdraw money. Example of Open Wallet is M-Pesa by Vodafone India Ltd in partnership with ICICI Bank Ltd.
Semi Open Wallet : These are wallets which can be used for purchase of goods and services at any card accepting merchant locations (Point of Sale Terminals ). These wallets do not permit cash withdrawal or redemption by the holder.
Semi Closed Wallet : These are wallets which can be used for purchase of goods and services from only identified and exclusive merchant locations or establishments which contract specifically with the issuer to accept payment wallet, including financial services. These wallets also does not allow to withdraw cash. An example of Semi Closed wallet is Paytm App and Citrus Cash App.
Closed Wallet : A Closed Wallet is issued by company or establishment for user to purchase goods and services exclusively from that company. These wallet does not allow cash withdrawal. It does not allow make payment at another merchant location for purchasing of goods and services like Airtel money till now allows only to make payment for airtel bill, airtel recharge.
Licenses and Approvals For issuing of Wallets : These wallets are governed by RBI by Payment and Settlement System Act, 2007. Banks, Non Banks and Companies issuing wallets needs to obtain PPI License from RBI. As per existing guidelines by RBI, For Closed Wallets, there is no need of RBI Approvals.
Banks who comply with the eligibility criteria would be permitted to issue all categories of pre-paid payment wallets.
However, only those banks which have been permitted to provide Mobile Banking Transactions by the Reserve Bank of India shall be permitted to launch mobile based pre-paid payment wallets (mobile wallets & mobile accounts).
Non-Banking Financial Companies (NBFCs) and other persons would be permitted to issue only closed and semi-closed system payment instruments, including mobile phone based pre-paid payment wallets.
Capital Requirements
Banks and Non-Banking Financial Companies which comply with the Capital Adequacy requirements prescribed by Reserve Bank of India from time-to-time, shall be permitted to issue pre-paid payment wallets.
All other persons, seeking authorisation henceforth, shall have a minimum paid-up capital of Rs. 500 lakh and minimum positive net worth of Rs. 100 lakh at all the times. Necessary instructions, if any, for the existing PPI issuers for compliance of enhanced capital requirements will be notified separately.
Applicant companies having FDI/FII should meet the minimum capital requirement as applicable under Consolidated FDI policy guidelines of Government of India.
Only companies incorporated in India will be eligible to apply for authorisation.
RBI Not to allow fresh application for PPI Until 28th February 2017.
As per press release dated September 02, 2016, RBI has temporary suspended accepting application for PPI license for wallets Until February 28, 2017 from banks and non banks. Applications already received by RBI till close of business on September 02, 2016 is processing as per existing guidelines. RBI will issue new guidelines for issuing of PPI license after undertaking comprehensive review of existing guidelines.
This temporary suspension will not be applicable to applications of newly licensed payment banks and small finance banks.
For any Query please ask.
0 Comments:
Leave a Reply