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E-wallets likely to regain currency

May 31, 2021

E-wallets likely to regain currency

E-wallets may regain some ground, with India’s payments mode and the Reserve Bank of India (RBI) permitting greater flexibility to the digital payments mechanism that lost some relevance after the introduction of unified payments interface (UPI) transactions.

As indicated by experts, permitting UPI to load cash to e-wallets will help make the payment instrument more well-known.

“With interoperability coming in, it will get simpler to move funds starting with one wallet then onto the next and make payments. As of now, UPI is simply restricted to financial balances, yet going ahead, wallets will utilize the UPI channel to guarantee interoperability,” said Mihir Gandhi, partners and leader (payments transformation) at PwC.

Recently, the RBI mandated issuers of prepaid payment instruments to permit interoperability by March 31 2022. It allowed interoperability through the UPI channel, the local payments network.

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