- The RBI has launched its pilot project that allows a few mobile payment providers to test cash withdrawal facilities for a small portion of their semi-closed wallet users. A few entities have already started carrying out transactions.
- Despite its earlier reservations against the move as it may lead to the cash-out facilities bypassing the banking system, the RBI has gone ahead with the move following petitions by many pre-paid payment issuers (PPIs).
- This will also allow it to see the extent of their popularity and any security issues that may come up. If this goes smoothly, RBI may permanently allow cash withdrawals that will boost the mobile payment players.
- Mobile wallets are digital products that can be loaded with cash, through a mobile payment provider or telecom operator, and be used to purchase goods electronically.
- Semi-closed wallets, considered by many as a formidable tool of financial inclusion do not require the user to have a bank account. However, they have one drawback that the user can add cash but can’t withdraw it.
- In the process, the sender and beneficiary’s wallet will be seeded with Aadhar number. A user who does not have a bank account, can use the mRUPEE outlet to receive the cash after appropriate biometric authentication.
- Tata Teleservices’ mobile wallet payment-based service mRUPEE is one of the eight participants in the RBI pilot.
- Read at: http://www.thehindu.com/todays-paper/tp-business/pilot-scheme-to-allow-drawals-from-semiclosed-mobile-wallets/article6106006.ece
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