Within the financial framework, stringent security rules have been formulated from the safety perspective. Reserve Bank of India, the apex regulatory body has taken another move to tighten safety of transactions. This step is about regulate payment gateway service providers and payment aggregators.
This would only mean that payment gateways should follow RBI guidelines and do as all financial entities do. The gateways this time are way more transparent and self-explanatory for smooth operations, used to the advantage for numerous thereby benefiting common people using them for making digital payments.
The whole framework of digital works in tandem with the rules and regulations of Reserve Bank of India.
Infact, the news is that digital payment wallets will soon turn interoperable with new RBI norms. Soon we will experience that two wallets interact with each other. Paytm will be used to load phonepe wallet. RBI has sanctioned directives to initiate interoperability between wallets and vouchers.
However, this is not a permanent fix for all the market competitors of e wallets. There’s no defined time period for using cross wallets and getting transactions done. It’s been said that the air of change will soon hit the financial space, but will emerge.
It certainly be difficult to operate wallet payments without the financial norms. They are intrinsically related to each other and regulates activities of digital wallets. RBI gives substantial credibility to e wallets and their operations in the payment ecosystem.
With the new norms implementation, users will now have the flexibility to conduct smooth financial transactions. There will be an easy outflow and inflow of money from wallets to the banks and sometimes through UPI as well.
Relationship between digital payments & financial industry norms
There shall be no fear of losing any money, it will simply be possible to transfer money within wallet at any point in time. The issuer company can easily tie up with any card network provider to make payments and offline transactions. Experts reveal that no significant difference will be found out between PPI and payments bank.
Reserve Bank of India is trying extremely hard to leave a mark on the digital world.
The idea is to take RBI instructions to expand the financial trap in the country. It will be easy to increase transactions thereafter with multiple wallets accepting transactions. This will also improve lives for merchants and users too. The digital market space is extremely new and kicking. The steps in here will only help to unite the payment world together.
The directives will only further authorize debit cards via UPI and network providers.