Mobile wallets are making headlines these days. Paytm and Mobikwik, both of which offer semi-closed wallets, are the leading players in the sector. Telecom operators also offer this facility. Internationally, too, Apple Inc. Has also introduced an iPhone wallet few months back, which has tie-ups with Visa Inc., MasterCard Inc. and American Express Co.
According to many experts, mobile wallets are going to be the next wave of change in the way people make payments.
Simply put, it is a virtual money wallet that can be used to make instant payments, same as with a physical wallet. It is an application stored in smart phones, which enables users to make payments for utility bills, book tickets, transfer money and other such transactions. It can also be used to make instant e-payments while shopping in physical stores or at e-stores.
Entities issuing closed prepaid payment systems do not require authorization from the RBI; they just need to inform the RBI.
Entities issuing semi-closed and open prepaid payment systems are required to take authorization from the RBI.
The Payments and Settlement Systems Act, 2007 is the primary law governing payments systems in India, with the RBI as the body that supervises related matters. Section 18 of the Act empowers the RBI to make such regulations as may be required, from time to time, to regulate payments systems in India. In exercise of the same, the RBI has laid down guidelines for the issuing and operation of Pre-paid Payment Instruments.
No comments:
Post a Comment