FB pixel

India’s digital wallets to get transfer boost and incentives for KYC

 

smartphone biometric identity and document verification

Digital payment wallets could be bolstered in India following changes to allow interoperability between wallets as long as users are checked for KYC compliance. The Reserve Bank of India (RBI) and India’s payment body are allowing more flexibility for the digital payments system as the Unified Payments Interface (UPI) will be extended to e-wallets and no longer be solely for banks, reports Mint.

UPI will be used for loading money to digital wallets and then allow users to transfer money easily between them. The RBI recently mandated that issuers of prepaid payment instruments (PPIs) to be ready for interoperability by 31 March 2022.

ICICI Bank became the first lender to add the feature for its Pocket wallets on 26 May after working with the National Payments Corp of India (NPCI) to link the wallets to the UPI.

Customers will have to be fully KYC compliant to enjoy the new services. Mint quotes the RBI as saying in April 2021 that there will be an incentive for users to become fully KYC compliant for PPIs in the form of doubling the balance limit from 100,000 rupees to 200,000 rupees (US$1,370 to $2,740).

There were 22.3 billion UPI bank transactions worth 41 trillion rupees ($562 billion) since in the year to the end of March 2021, reports Mint quoting the RBI. This compares to 4 billion e-wallet transactions worth 1.52 trillion rupees ($16.4 billion) in the same period.

Digital wallets lost their appeal to users in 2016 when the NPCI introduced the rapid interbank payments UPI system, making e-wallets comparatively inconvenient.

Mihir Gandhi, partner and leader of payments transformation at PwC is optimistic as quoted by Mint: “It is expected that wallets will be used for person-to-merchant transactions where there is convenience and some rewards to the customer. The new rules will lead to more wallet transactions at merchant outlets where the customer can use UPI to pay for goods or services, either offline or online.”

RBI has been attempting to balance fraud concerns in the expanding financial ecosystem and KYC standards with the desire (and court mandates) to limit Aadhaar’s scope.

Article Topics

 |   |   |   |   |   |   |   |   |   | 

Latest Biometrics News

 

UK train stations trial Amazon emotion recognition on passengers

Amazon-powered AI cameras are now being used to monitor and analyze passengers’ emotions by employing a combination of “smart” CCTV…

 

IDloop launches 3D contactless fingerprint biometrics scanner

Germany-based biometric security company IDloop has introduced the CFS flats, an optical contactless fingerprint scanner that incorporates 3D imaging. This…

 

Clearview, Axess, 3DiVi, Next, Facephi target international growth

Several biometrics providers with established footholds have struck deals to expand into new geographies, while an access control multinational is…

 

House committee wants to check TSA’s digital identity homework

The U.S. House Homeland Security Committee has advanced legislation that would require the Transportation Security Authority (TSA) to produce a…

 

Vermont governor rejects privacy law that would be among strongest in US

The governor of Vermont says the state’s proposed data protection law is too risky, and has returned H.121, “An act…

 

Meta scores biometric privacy lawsuit win over Facebook non-users

A BIPA class action lawsuit against social media giant Meta has been quashed. The suit alleged that Meta Platforms Inc….

Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Read This Week

Featured Company

Biometrics Insight, Opinion

Digital ID In-Depth

Biometrics White Papers

Biometrics Events