Having money in the Mobile Wallet but not being able to withdraw is literally a pain, isn’t it? Many times, poor bank servers, low connectivity, or non-availability of ATM cards can put us in such situations. Even though the option of digital transaction is always there, sometimes we all need cash. To ease this problem, RBI has come with a decision. Now, mobile wallet users can easily withdraw cash from ATMs without using their debit cards.
Yes, this is now possible. Read further to know how users can withdraw money using a mobile wallet.
Upgrading Digital Wallets Through Interoperability
To upgrade the services by payment companies, RBI has mandate interoperability between banks and payment companies. This will be done through a KYC procedure that will allow users to transfer money to users of other banks or prepaid payment instruments such as Vodafone, Airtel.
The interoperability was only voluntary for PPIs as per the previous guidelines but the new move will ensure that all PPIs across the country work in co-operation with mobile wallets. Once the process of interoperability is complete, users can make financial transactions between different mobile wallets and banks.
Now, PPIs can also become members of RTGS and NEFT. These are centralized payment systems operated by RBI. Furthermore, the limit of maintaining balance has also increased by Rs 2 lakh in the PPIs.
To facilitate the services, companies will issue cards to the users so that they can easily withdraw money without transferring it to banks. The cards will also be allowed at merchant stores and ATMs. This new step will be highly beneficial for those with no bank accounts.
For instance, students who don’t have a bank account but want to save money for their study-related expenses will be highly benefited from this new decision. Parents will be saved from the money transfer to banks and maintaining a balance in their account. They can directly transfer the cash to mobile wallets.
Users will have to wait for this new service as interoperability of all PPIs will take time but one thing is sure that the future of digital transaction is definitely bright.
Though this move is welcoming and highly fruitful for customers of all ages, there is a security concern, as well as not all wallet providers, are using top technologies to provide digital safety to the customers.
Data leakage and frauds will be a series of concerns thus companies will have to gear up their tech infrastructure.