Monetary Policy: Money kept in various cash wallets can be withdrawn from ATM and PoS terminals soon

Soon money kept in various cash wallets can be withdrawn from ATM and Point of Sale terminals. The Reserve Bank of India announced this decision after a meeting of the Monetary Policy Committee's meeting on Wednesday. Detailed instructions will be issued separately.

As per reports, at present Reserve Bank of India has permitted 35 prepaid payments instruments (PPI). It includes Delhi Metro Card, Amazon Pay, Phonepe, Ola Money, Mobikwick wallet etc. Money can be loaded in these wallets, it can be transferred to another wallet or bank account or it can be used to make payment during online transactions. Soon money from these instruments can be withdrawn using an ATM. RBI's governor has made this announcement after a meeting of the Monetary Policy Committee.

This has been done to incentivise digital banking and discourage people to carry less cash, the RBI Governor said. "The measure, in conjunction with the mandate for interoperability, will give a boost to migration to full-KYC PPIs and would also complement the acceptance infrastructure in Tier III to VI centres. Necessary instructions will be issued separately," the Governor said during his Monetary Policy Speech.

RBI has also proposed to make interoperability mandatory for full KYC PPI. Now balance in these wallets has been increased to Rs 2 lakh from Rs 1 lakh. Besides this, RBI also allowed these wallets, credit and prepaid cards to use RTGS and NEFT for money transfer.

The membership to the RBI-operated Centralised Payment Systems (CPSs) – RTGS and NEFT – till now were limited to banks, with a few exceptions like clearing corporations and select development financial institutions.