The Reserve Bank of India’s (RBI) proposed changes to mobile wallet rules have created concern across the digital payments industry.
Companies dealing with prepaid wallets and payment services fear that the new restrictions could hurt business growth and reduce earning opportunities.
Several industry players are now preparing to approach the RBI and request changes to the draft rules.
Why Digital Payment Companies Are Worried
According to industry executives, the RBI’s draft guidelines issued on April 22 could significantly impact businesses that depend on prepaid payment instruments (PPIs), including mobile wallets and prepaid cards.
A senior executive from a digital payments company reportedly said that companies are currently gathering feedback and suggestions before presenting their concerns to the RBI.
Industry leaders believe the proposed rules are too strict and could disrupt several existing payment services.
Many companies are also asking the RBI to extend the implementation timeline by 6 to 12 months so businesses get enough time to adjust.
What Changes Has RBI Proposed?
The RBI’s draft rules include several new restrictions on wallet transactions and balances.
Some of the major proposals include:
A monthly limit of Rs 25,000 for person-to-person (P2P) money transfers through wallets
Reducing the cash loading limit in wallets from Rs 50,000 to Rs 10,000
Setting a total monthly wallet balance limit of Rs 2 lakh
The RBI has also proposed stricter rules for wallets with minimum KYC.
Minimum KYC Wallets May Face Major Restrictions
One of the biggest concerns for the industry is the proposal related to low-KYC wallets.
According to the draft rules, wallets with minimum KYC verification may only be used for purchasing goods and services.
Users may no longer be allowed to send money to other people through such wallets.
Industry experts say this could seriously impact money transfer businesses, especially services used by migrant workers to send money home quickly.
Companies believe many users still rely on basic KYC wallets, and forcing full KYC immediately could slow down customer usage.
Industry Wants More Discussion With RBI
Digital payment companies are now seeking more discussions with the central bank before the rules are finalized.
According to industry officials, the proposed limits could reduce transaction volumes and make several prepaid wallet business models less profitable.
Companies are expected to submit their suggestions to the RBI soon, hoping for:
Relaxed transaction limits
More flexibility for wallet services
Extra time for implementation
What This Means for Wallet Users
If the new rules are implemented in their current form, mobile wallet users may face tighter transaction limits and stricter KYC requirements.
Popular wallet-based services for sending money, loading cash, and maintaining balances could become more restricted than before.
The final decision from the RBI will now be closely watched by both digital payment companies and millions of wallet users across India.
