{"id":9288,"date":"2026-03-04T23:20:00","date_gmt":"2026-03-04T17:50:00","guid":{"rendered":"https:\/\/cashfree.com\/blog\/?p=9288"},"modified":"2026-03-05T13:14:17","modified_gmt":"2026-03-05T07:44:17","slug":"ppi-interoperability","status":"publish","type":"post","link":"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/","title":{"rendered":"PPI Interoperability: How It Connects Billion Dollar Mobile Wallet Industry in India"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #005c31;color:#005c31\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #005c31;color:#005c31\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#What_Are_Prepaid_Payment_Instruments_PPIs\" >What Are Prepaid Payment Instruments (PPIs)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Types_of_Prepaid_Payment_Instruments_PPIs\" >Types of Prepaid Payment Instruments (PPIs)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#1_Closed_PPIs\" >1. Closed PPIs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#2_Semi-Closed_PPIs\" >2. Semi-Closed PPIs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Types_of_Semi-Closed_PPIs\" >Types of Semi-Closed PPIs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#3_Open_System_PPIs\" >3. Open System PPIs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#What_Is_PPI_Interoperability\" >What Is PPI Interoperability?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#RBI_Regulations_On_Prepaid_Payment_Instruments_PPI_Interoperability\" >RBI Regulations On Prepaid Payment Instruments (PPI) Interoperability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Who_is_responsible_for_issuing_PPIs_Prepaid_Payment_Instruments\" >Who is responsible for issuing PPIs? (Prepaid Payment Instruments)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#RBI_Certified_Bank_PPI_Provider\" >RBI Certified Bank PPI Provider<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#RBI_Licensed_Non-Bank_PPI_Provider\" >RBI Licensed Non-Bank PPI Provider<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#PPI_Limit_in_India\" >PPI Limit in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#What_Are_The_Perks_Of_PPI_Interoperability\" >What Are The Perks Of PPI Interoperability?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#For_Merchants\" >For Merchants<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Accept_More_Wallet_Payments\" >Accept More Wallet Payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Greater_Digital_Payment_Adoption\" >Greater Digital Payment Adoption<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Less_Cash_Management\" >Less Cash Management\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Effective_Substitute_To_Bank_Accounts\" >Effective Substitute To Bank Accounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Increased_Limit_From_1_Lakh_to_2_Lakhs\" >Increased Limit From 1 Lakh to 2 Lakhs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#No_Need_For_Multiple_Wallet_Integrations\" >No Need For Multiple Wallet Integrations<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#For_Consumers\" >For Consumers<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Highly_Consumer-Friendly\" >Highly Consumer-Friendly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Higher_Financial_Inclusion_And_Penetration\" >Higher Financial Inclusion And Penetration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Encourage_More_Innovation\" >Encourage More Innovation\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Seek_Quick_Redressals_From_Issuers\" >Seek Quick Redressals From Issuers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Higher_Use_Cases\" >Higher Use Cases<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#For_PPI_Issuers\" >For PPI Issuers<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Becoming_Quasi-Banks\" >Becoming Quasi-Banks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Better_Access_To_Payment_Infrastructure\" >Better Access To Payment Infrastructure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Additional_Sources_Of_Revenue\" >Additional Sources Of Revenue\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Challenges_PPI_Players_Need_to_Watch_Out_For\" >Challenges PPI Players Need to Watch Out For<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Provide_Satisfying_Customer_Support\" >Provide Satisfying Customer Support<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Easy_Onboarding_Processes\" >Easy Onboarding Processes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Improve_And_Simplify_KYC_Processes\" >Improve And Simplify KYC Processes<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Boost_To_Digital_Payments_And_Greater_Financial_Inclusion\" >Boost To Digital Payments And Greater Financial Inclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Interoperability_is_the_Road_To_The_Future\" >Interoperability\u00a0is the Road To The Future<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Frequently_Asked_Questions_on_Prepaid_Payment_Instruments_PPIs\" >Frequently Asked Questions on Prepaid Payment Instruments (PPIs)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Is_KYC_mandatory_for_PPIs\" >Is KYC mandatory for PPIs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#Are_Prepaid_Payment_Instruments_PPIs_secure\" >Are Prepaid Payment Instruments (PPIs) secure?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/blogrevamp.cashfree.com\/ppi-interoperability\/#What_is_interoperability_in_Prepaid_Payment_Instruments_PPIs\" >What is interoperability in Prepaid Payment Instruments (PPIs)?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\nIn this blog, we will understand the concept of Prepaid Payment Instruments (PPIs) and PPI interoperability. We will also try to understand what it could mean to Indian businesses and masses.\n\n<!-- \/wp:post-content --><!-- wp:paragraph -->\n\nAfter demonetisation, the prepaid payments instruments (PPI) industry saw some massive growth.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nHowever, there were too many players in the market. Moreover, funds could only be transferred between two wallets of the same issuer. (For instance, Paytm users can only send money to another Paytm wallet, not a Mobikwik wallet)\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\n<strong>This was until PPI interoperability came into the picture, of course.<\/strong>\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nBut before we dive into that, let&#8217;s look at the basics.\n\n<!-- \/wp:paragraph --><!-- wp:heading -->\n<h2><span class=\"ez-toc-section\" id=\"What_Are_Prepaid_Payment_Instruments_PPIs\"><\/span>What Are Prepaid Payment Instruments (PPIs)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n\nAs the name suggests, Prepaid Payment Instruments or PPIs are cards or <strong><mark style=\"background-color: rgba(0, 0, 0, 0);\"><a href=\"https:\/\/www.cashfree.com\/blog\/benefits-of-white-label-digital-wallets-for-d2c-brands\/\">digital wallets <\/a><\/mark><\/strong>that allow users to:\n\n<!-- \/wp:paragraph --><!-- wp:list -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul><!-- wp:list-item -->\n \t<li>Purchase goods and services<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Enable remittance facilities<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Conduct financial transactions<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Transfer funds to family and friends<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item -->\n\n<!-- \/wp:list --><!-- wp:paragraph -->\n\nThey\u2019re also called <strong>PPI digital wallets or PPI e-wallets<\/strong>.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nThese instruments are typically preloaded with funds in order to enable a user to make payment.\u00a0Paytm, <strong><mark style=\"background-color: rgba(0, 0, 0, 0);\"><a href=\"https:\/\/www.cashfree.com\/blog\/phonepe-transaction-limit-per-day\/\">PhonePe<\/a><\/mark><\/strong>, Mobikwik, etc. are some popular examples.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nThe companies offering these wallets as offerings are called <strong><strong>Prepaid Payment Instruments<\/strong><\/strong> (<strong>PPIs) Issuers.<\/strong> They permit users to add funds to their app wallets and use them for various transactional purposes.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nOver the last couple of years, Prepaid Payment Instruments have become quite popular in the Indian market as they\u2019re a convenient alternative to cash transactions.\n\n<!-- \/wp:paragraph --><!-- wp:image {\"id\":9293,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure><img data-recalc-dims=\"1\" height=\"892\" width=\"770\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2022\/05\/Prepaid-Payment-Instruments-884x1024.png?resize=770%2C892&#038;ssl=1\" alt=\"Prepaid Payment Instruments (PPIs) - A Convenient Alternative To Cash\" \/><\/figure>\n<!-- \/wp:image --><!-- wp:heading -->\n<h2 style=\"line-height: 1.38; margin-top: 12pt; margin-bottom: 12pt;\"><span class=\"ez-toc-section\" id=\"Types_of_Prepaid_Payment_Instruments_PPIs\"><\/span>Types of Prepaid Payment Instruments (PPIs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 12pt; margin-bottom: 12pt;\">Prepaid Payment Instruments (PPIs) are instruments that allow users to load funds in advance in e-wallets and use them for digital payments, purchases, remittances, or withdrawals (depending on the type). In India, PPIs are regulated by the Reserve Bank of India under the PPI Master Directions.<\/p>\n\n<h3 style=\"line-height: 1.38; margin-top: 16pt; margin-bottom: 4pt;\"><span class=\"ez-toc-section\" id=\"1_Closed_PPIs\"><\/span>1. Closed PPIs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 16pt; margin-bottom: 4pt;\" role=\"presentation\">Closed PPIs are simply gift cards issued by a company, and they can only be used to purchase goods and services from the same entity that issued them. They cannot be used outside that specific ecosystem, i.e., the issuing company. It is usable only on the issue\u2019s platform; you cannot withdraw the cash or transfer it from the e-wallet to another bank account. In this, no third-party merchant can use the card, as it is generally issued as a voucher or store credit, allowing buyers to use it easily and quickly. Closed PPIs are not considered formal PPIs under the guidelines of the Reserve Bank of India, as they do not involve third-party payments. Examples include: &#8211; Amazon Pay balance, which can only be used on Amazon; Myntra gift cards; Flipkart gift vouchers; and other branch-specific gift cards.<\/p>\n\n<h3 style=\"line-height: 1.38; background-color: #ffffff; margin-top: 18pt; margin-bottom: 4pt;\"><span class=\"ez-toc-section\" id=\"2_Semi-Closed_PPIs\"><\/span>2. Semi-Closed PPIs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\" style=\"line-height: 1.38; background-color: #ffffff; margin-top: 18pt; margin-bottom: 4pt;\" role=\"presentation\">Semi-closed PPIs can be used at a group of merchants that have a specific agreement with the PPI issuer. These are the most common wallet-type PPIs in India. It is a type of payment option that does not allow users to withdraw cash, unless in specific RBI-approved cases. The e-wallets are usually semi-closed PPIs, and they can be used for online and offline merchant payments. Subject to KYC norms, the prescribed loading limits are optimised.<\/p>\n\n<h2 dir=\"ltr\" style=\"line-height: 1.38; background-color: #ffffff; margin-top: 0pt; margin-bottom: 4pt; padding: 6pt 0pt 0pt 0pt;\"><span class=\"ez-toc-section\" id=\"Types_of_Semi-Closed_PPIs\"><\/span>Types of Semi-Closed PPIs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Small PPI (Minimum KYC): In a small PPI, the user is required to do OTP-based verification with a monthly loading cap, like \u20b910,000. Once the user adds funds to the specific app they are using, it cannot be transferred to bank accounts and has a validity of 1 year.<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Full-KYC PPI: In full KYC, the user has to go through complete KYC verification in order to have a higher balance limit, up to \u20b92 lakh as per current RBI norms. In full KYC, there is a fund transfer allowed, i.e., wallet-to-wallet\/bank transfer. Paytm Wallet, MobiKwik Wallet, or PhonePe Wallet.<\/li>\n<\/ul>\n<h3 style=\"line-height: 1.38; background-color: #ffffff; margin-top: 24pt; margin-bottom: 6pt;\"><span class=\"ez-toc-section\" id=\"3_Open_System_PPIs\"><\/span>3. Open System PPIs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"line-height: 1.38; background-color: #ffffff; margin-top: 24pt; margin-bottom: 6pt;\">Open PPIs are prepaid cards issued only by banks and can be used for purchasing goods and services, including fund transfers and cash withdrawals. They work similarly to debit cards but require funds to be preloaded. It is easily usable at any merchant accepting card networks, allows quick ATM withdrawals, and every user using the card is fully KYC-compliant. Examples include RuPay prepaid cards, Visa prepaid cards and Mastercard prepaid cards. These cards are usually used for overseas travel, salary, or as corporate expense cards.<\/p>\n\n<h2><span class=\"ez-toc-section\" id=\"What_Is_PPI_Interoperability\"><\/span>What Is PPI Interoperability?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n\nIn basic terms, interoperability means enabling products or systems to work together and use each other\u2019s capabilities to strengthen the entire ecosystem.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nInteroperability of PPIs works on the same principles.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nIt gives consumers with full-KYC accounts the ability to use their digital wallet(s) to\n\n<!-- \/wp:paragraph --><!-- wp:list -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul><!-- wp:list-item -->\n \t<li>Make a payment at any <a href=\"https:\/\/www.cashfree.com\/blog\/epos\/\"><strong><mark style=\"background-color: rgba(0, 0, 0, 0);\">POS (point-of-sale)<\/mark><\/strong><\/a> site that has the facility to accept online payments<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Withdraw cash from ATMs and POS terminals<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Transfer money from one wallet to another, irrespective of their nature<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item -->\n\n<!-- \/wp:list --><!-- wp:paragraph -->\n\nThis also comes regardless of who issues the payment instrument. <strong>So, a customer could transfer money from a Paytm wallet to a Mobikwik wallet instantly.<\/strong>\n\n<!-- \/wp:paragraph --><!-- wp:image {\"id\":9298,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure><img data-recalc-dims=\"1\" height=\"481\" width=\"770\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2022\/05\/PPI-Interoperability-Features-1024x640.png?resize=770%2C481&#038;ssl=1\" alt=\"PPI (prepaid payment instruments) interoperability features\" \/><\/figure>\n<!-- \/wp:image --><!-- wp:paragraph -->\n\nThe basic idea behind making PPIs interoperable came after the RBI tested the same mechanics on UPI. One platform to unify different payment modes? It was a <a href=\"https:\/\/www.business-standard.com\/article\/finance\/upi-hits-record-high-in-april-with-5-58-bn-transactions-worth-rs-9-83-trn-122050100480_1.html'\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">recipe for success<\/a>.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nOn the hypothesis tested, they\u2019re now confident that by making PPI interoperable in nature, all the respective stakeholder levels including consumers, merchants, banks, and issuers, everyone will enjoy the following benefits.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\n<strong>All in all, while the term<\/strong> <strong>PPI interoperability is quite the tongue twister, it will simplify payments just the same<\/strong>.\n\n<!-- \/wp:paragraph --><!-- wp:heading -->\n<h2><span class=\"ez-toc-section\" id=\"RBI_Regulations_On_Prepaid_Payment_Instruments_PPI_Interoperability\"><\/span>RBI Regulations On <strong>Prepaid Payment Instruments<\/strong> (PPI) Interoperability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n\nThe RBI has been stressing on making PPIs interoperable amongst the issuing and acquiring entities given the,\n\n<!-- \/wp:paragraph --><!-- wp:list -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul><!-- wp:list-item -->\n \t<li>Feeble usage of payment instruments such as cards and <strong><mark style=\"background-color: rgba(0, 0, 0, 0);\"><a href=\"https:\/\/www.cashfree.com\/blog\/types-of-e-wallets\/\">e-wallets<\/a><\/mark><\/strong> by the Indian citizens<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Presence of an inadequate payment acceptance infrastructure in the country<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item -->\n\n<!-- \/wp:list --><!-- wp:paragraph -->\n\n<strong>To address these issues and make PPIs an integral part of India\u2019s larger financial services ecosystem, here\u2019s what the RBI\u2019s PPI interoperability mandate states.\u00a0<\/strong>\n\n<!-- \/wp:paragraph --><!-- wp:list -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul><!-- wp:list-item -->\n \t<li>PPIs used for transportation such as metro or other public transport cards, will not come under interoperability<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Entities issuing gift cards, meal cards, and MTS can choose whether or not to make their cards interoperable<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>PPI Interoperability will be applicable to only those customers with <a href=\"https:\/\/www.cashfree.com\/blog\/all-about-rbis-recent-steps-digitising-business-kyc-updation\/\">complete-KYC <\/a>accounts<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Customers with minimum or partial KYC will not be able to take benefits of interoperability<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>PPI issuers will have to adhere to all the requirements as stated by the card networks\/UPI including<!-- wp:list -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul><!-- wp:list-item -->\n \t<li>Type and criteria of membership<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li><strong><mark style=\"background-color: rgba(0, 0, 0, 0);\"><a href=\"https:\/\/www.cashfree.com\/blog\/what-are-the-kyc-procedures-for-merchant-onboarding\/\">Merchant on-boarding<\/a><\/mark><\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Adhering to various standards<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Rules and regulations applicable against certain payment systems<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item -->\n\n<!-- \/wp:list --><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>PPI issuers will have to handle all the dispute resolutions and set up customer grievance redressal cells to provide solutions<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Card networks can onboard PPI issuers to join their network<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Non-bank PPI issuers can only participate as members or associate members of authorised card networks<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>PPI issuers can facilitate all the basic UPI interoperability features<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>PPI issuers will act as Payment System Providers (PSP) in the <a href=\"https:\/\/cashfree.com\/blog\/upi-integration\/\"><strong><mark style=\"background-color: rgba(0, 0, 0, 0);\">UPI<\/mark><\/strong><\/a> ecosystem. They will be issued a handle by the NPCI in line with its predefined policies\/guidelines<\/li>\n \t<li>PPI holders can only be onboarded by their own PPI issuer for UPI. PPI issuers as PSPs cannot onboard customers of any bank or other PPI issuer.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<h2 dir=\"ltr\" style=\"line-height: 1.38; margin-top: 12pt; margin-bottom: 0pt; padding: 0pt 0pt 12pt;\"><span class=\"ez-toc-section\" id=\"Who_is_responsible_for_issuing_PPIs_Prepaid_Payment_Instruments\"><\/span>Who is responsible for issuing PPIs? (Prepaid Payment Instruments)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;\">The Reserve Bank of India is the only organisation responsible for granting licences to companies to issue PPIs, setting regulations for PPI operations, safeguarding consumers through security and KYC compliance, and monitoring and controlling PPI issuers.<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;\">No Indian company may issue a prepaid card or wallet without first obtaining approval from the Reserve Bank of India, per the Payment and Settlement Systems Act of 2007.<\/p>\n\n<h4 dir=\"ltr\" style=\"line-height: 1.8; margin-top: 0pt; margin-bottom: 0pt; padding: 12pt 0pt 2pt;\"><span class=\"ez-toc-section\" id=\"RBI_Certified_Bank_PPI_Provider\"><\/span>RBI Certified Bank PPI Provider<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;\">Below is the list of banks authorised to issue PPIs.<\/p>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;\">Name of the Banks<\/p>\n\n<ol>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Bank of Baroda<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Bank of India<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Axis Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Bank of Maharashtra<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Airtel Payments Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">American Express Banking Corporation<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Au Small Finance Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Bandhan Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Barclays Bank PLC<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Canara Bank<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Central Bank of India<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Citi Bank N.A.<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">City Union Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">DBS Bank India Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">DCB Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">HDFC Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">ICICI Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">IDBI Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">IDFC FIRST Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Indian Bank<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Indian Overseas Bank<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">IndusInd Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Jana Small Finance Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Jio Payments Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Karnataka Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Karur Vysya Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">State Bank of India<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Kerala Gramin Bank<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Kotak Mahindra Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Lakshmi Vilas Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">NSDL Payments Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Pragathi Krishna Gramin Bank<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Punjab National Bank<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Punjab &amp; Sind Bank<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Standard Chartered Bank<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">SBM BANK (INDIA) LTD.<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">South Indian Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Paytm Payments Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Tamilnad Mercantile Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">The Ahmedabad Mercantile Co-operative Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">The Catholic Syrian Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">The Dhanlaxmi Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">The Federal Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">The Gujarat State Co-operative Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">The New India Co-operative Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">The Rajasthan State Co-operative Bank Ltd.<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">TJSB Sahakari Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">RBL Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">The Saraswat Co-operative Bank Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">UCO Bank<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Union Bank of India<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Utkarsh Small Finance Bank Limited (Only for FASTag issuance facility)<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Yes Bank Limited<\/li>\n<\/ol>\n<h3 dir=\"ltr\" style=\"line-height: 1.38; margin-top: 16pt; margin-bottom: 4pt;\"><span class=\"ez-toc-section\" id=\"RBI_Licensed_Non-Bank_PPI_Provider\"><\/span>RBI Licensed Non-Bank PPI Provider<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;\">Below is the list of non-bank Prepaid Payment Instruments (PPI) in India.<\/p>\n\n<ol>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">The Clearing Corporation of India Ltd.<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">AMC Repo Clearing Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">National Payments Corporation of India (NPCI) \/ NPCI Bharat BillPay Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Infibeam Avenues Limited (formerly Avenues India Pvt Ltd)<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">CSC e-Governance Services India Ltd<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Euronet Services India Pvt Ltd<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">IndiaIdeas.com Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Ebix Payment Services Pvt Ltd (formerly ItzCash Card Ltd)<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Spice Money Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Worldline ePayments India Pvt Ltd<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">One Mobikwik Systems Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">PayU Payments Pvt Ltd<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">PhonePe Private Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">American Express Banking Corp., USA (non-bank issuer in India)<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Diners Club International Ltd., USA (non-bank issuer)<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">MasterCard Asia\/Pacific Pte. Ltd. (non-bank issuer)<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Amazon Pay (India) Private Limited<\/li>\n \t<li dir=\"ltr\" style=\"line-height: 1.38;\" role=\"presentation\">Zoho Payment Technologies Private Limited<\/li>\n<\/ol>\n<h2 dir=\"ltr\" style=\"line-height: 1.38; margin-top: 18pt; margin-bottom: 6pt;\"><span class=\"ez-toc-section\" id=\"PPI_Limit_in_India\"><\/span>PPI Limit in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"border-width: initial; border-style: none; table-layout: fixed; width: 468pt;\"><colgroup> <col \/> <col \/> <col \/> <col \/><\/colgroup>\n<tbody>\n<tr style=\"height: 0pt;\">\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\"><strong>Type of PPI<\/strong><\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\"><strong>Max Limit\u00a0<\/strong><\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\"><strong>Reload Available<\/strong><\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\"><strong>Cash Withdrawal<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 0pt;\">\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">Small PPI<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">\u20b910,000<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">Yes<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">No<\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 0pt;\">\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">Full-KYC PPI<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">\u20b92,00,000<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">Yes<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">Yes<\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 0pt;\">\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">MTS PPI<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">\u20b93,000<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">Yes<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">No<\/p>\n<\/td>\n<\/tr>\n<tr style=\"height: 0pt;\">\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">Gift PPI<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">\u20b910,000<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">No<\/p>\n<\/td>\n<td style=\"border-width: 1pt; border-left-style: solid; border-color: #000000; border-right-style: solid; vertical-align: top; padding: 5pt; overflow: hidden; overflow-wrap: break-word;\">\n<p dir=\"ltr\" style=\"line-height: 1.2; margin-top: 0pt; margin-bottom: 0pt;\">No<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- \/wp:list-item -->\n\n<!-- \/wp:list --><!-- wp:heading -->\n<h2><span class=\"ez-toc-section\" id=\"What_Are_The_Perks_Of_PPI_Interoperability\"><\/span>What Are The Perks Of PPI Interoperability?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n\nPPI interoperability is expected to be the next game-changer for the payments industry. In fact, it may propel the payment ecosystem to be more innovative and competitive.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nThe key impact of PPI interoperability on different stakeholders is as follows.\n\n<!-- \/wp:paragraph --><!-- wp:image {\"id\":9300,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure><img data-recalc-dims=\"1\" height=\"408\" width=\"770\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2022\/05\/Perks-Of-PPI-Interoperability-1024x543.png?resize=770%2C408&#038;ssl=1\" alt=\"Perks of PPI interoperability\" \/><\/figure>\n<!-- \/wp:image --><!-- wp:heading {\"level\":3} -->\n<h3><span class=\"ez-toc-section\" id=\"For_Merchants\"><\/span>For Merchants<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Accept_More_Wallet_Payments\"><\/span><strong>Accept More Wallet Payments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nAt present, mobile wallet service providers need to constantly add more merchants to their network to get more consumers to use their wallets in various instances. With PPI interoperability, all UPI-accepting merchants would be able to accept payments via their wallets. This means,\n\n<!-- \/wp:paragraph --><!-- wp:list -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul><!-- wp:list-item -->\n \t<li>More consumer-onboarding<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Enhanced transaction volume<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Higher business revenue<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item -->\n\n<!-- \/wp:list --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Greater_Digital_Payment_Adoption\"><\/span><strong>Greater Digital Payment Adoption<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nLooking at the current economics, it\u2019s quite evident that the interoperability of PPIs will lead to a greater <a href=\"https:\/\/www.cashfree.com\/blog\/offline-digital-payments\/\"><strong><mark style=\"background-color: rgba(0, 0, 0, 0);\">digital payment adoption<\/mark><\/strong><\/a> and usage in India. This will also boost the value and utility of the payment instruments among users. Resultantly increasing the merchant\u2019s customer base.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Less_Cash_Management\"><\/span><strong>Less Cash Management\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nSince all transactions will commence between wallets or wallet-to-bank accounts, the need to manage cash and keeping a track of transactions is significantly reduced.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nSmall merchants can easily reconcile their accounts using the PPI apps and avoid the need to regularly manage and deposit the collected cash in the bank.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\n<strong>Related Read: <a href=\"https:\/\/cashfree.com\/blog\/reconciling-your-payment\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=ppi_interoperability\"><mark style=\"background-color: rgba(0, 0, 0, 0);\">Reconciling Your Payments as a Merchant<\/mark><\/a><\/strong>\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Effective_Substitute_To_Bank_Accounts\"><\/span><strong>Effective Substitute To Bank Accounts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nThe very nature of PPIs, especially prepaid cards and e-wallets, is quite similar to that of bank accounts. Only that these PPIs are far more effective, cheaper, and a faster substitute for bank accounts.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nMerchants can conveniently use these bank-account-like-alternatives to commence many basic business activities. Some of them are as follows.\n\n<!-- \/wp:paragraph --><!-- wp:image {\"id\":9320,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure><img data-recalc-dims=\"1\" height=\"585\" width=\"770\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2022\/05\/e-Wallets-As-An-Effective-Substitute-2-1024x778.png?resize=770%2C585&#038;ssl=1\" alt=\"prepaid payment instruments (PPI) are substitutes to bank accounts\" \/><\/figure>\n<!-- \/wp:image --><!-- wp:paragraph -->\n\nAnd the list goes on!\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Increased_Limit_From_1_Lakh_to_2_Lakhs\"><\/span><strong>Increased Limit From 1 Lakh to 2 Lakhs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nMany merchants today use wallets to accept payments from customers. However, the earlier wallet limit of INR 1 lakh restricted them from using the wallets to their maximum potential. Moreover, many wallets swept the extra funds into FDs at the payments bank\u2019s end.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nNow, the limit has been extended to INR 2 lakhs (for full-KYC PPIs). This not only ensures that merchants can accept more payments from consumers including high-ticket transactions.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"No_Need_For_Multiple_Wallet_Integrations\"><\/span><strong>No Need For Multiple Wallet Integrations<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nWith interoperability in the picture now, small merchants (or one-man businesses) don\u2019t need to integrate specific wallets to accept payments. They can now accept payment in any wallet of their choice from any wallet that a consumer uses.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nNaturally, it is not feasible for medium or large businesses to accept payments like that.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nFor starters, they need to accept payments from various payment modes like cards and net banking too. On top of that, they need easy-to-use reconciliation and settlement services.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nA <a href=\"https:\/\/cashfree.com\/blog\/payment-aggregator\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=ppi_interoperability\"><strong><mark style=\"background-color: rgba(0, 0, 0, 0);\">payment aggregator<\/mark><\/strong><\/a> like Cashfree Payments accepts payments from multiple wallets. Cashfree allows merchants to accept payment from 120+ payment options with utmost ease and comfort.\n\n<!-- \/wp:paragraph --><!-- wp:image {\"id\":9341,\"sizeSlug\":\"large\",\"linkDestination\":\"custom\"} -->\n\n<!-- \/wp:image --><!-- wp:paragraph -->\n\nThe payment gateway also,\n\n<!-- \/wp:paragraph --><!-- wp:list -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul><!-- wp:list-item -->\n \t<li>Collects funds from all digital sources on behalf of the merchant<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Sends collated funds into merchant account<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Reconciles accounts and ensures seamless accounting<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Offers additional payment acceptance sources like payment links, forms, QR codes, etc<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item -->\n\n<!-- \/wp:list --><!-- wp:paragraph -->\n\n<strong>Pro Tip: <mark style=\"background-color: rgba(0, 0, 0, 0);\"><a href=\"https:\/\/www.cashfree.com\/blog\/unit-tests-coverage-dashboard\/\">Sonarqube Unit Test<\/a><\/mark><\/strong>\n\n<!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} -->\n<h3><span class=\"ez-toc-section\" id=\"For_Consumers\"><\/span>For Consumers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Highly_Consumer-Friendly\"><\/span><strong>Highly Consumer-Friendly<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nFrom a consumer\u2019s point of view, PPI interoperability will offer higher payment convenience with less restrictions.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nConsumers will have the liberty to easily and swiftly transfer funds across different wallets irrespective of the issuer.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Higher_Financial_Inclusion_And_Penetration\"><\/span><strong>Higher Financial Inclusion And Penetration<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nWith PPIs becoming interoperable, they\u2019ll be at par with a bank\u2019s savings account. This will, in turn, make PPIs more appealing to the citizens of India and encourage more digital penetration. Looking at the scope this will effectively benefit the unbanked and underbanked section of the population.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nTo give you an example, with PPI interoperability coming into the picture, consumers will be able to\n\n<!-- \/wp:paragraph --><!-- wp:list -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul><!-- wp:list-item -->\n \t<li>Avail small value loans<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Blue-collar workers could receive salaries\/wages directly into their PPI wallets<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Do micro-savings and achieve life goals<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>make small-ticket size payments, both online and offline<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item -->\n\n<!-- \/wp:list --><!-- wp:paragraph -->\n\nThe concept will also help women become more financially independent. They\u2019ll have access to useful and affordable financial products and services that will help them make sound financial investment decisions and make small-ticket purchases without anyone\u2019s help.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Encourage_More_Innovation\"><\/span><strong>Encourage More Innovation\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nAs the Fintech market innovates and ships new and better prepaid payment instruments in the Indian market, more consumers will benefit in the process.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nThey\u2019ll have access to more innovative financial products and better means to manage their finances.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\n<strong>Pro Tip: <mark style=\"background-color: rgba(0, 0, 0, 0);\"><a href=\"https:\/\/www.cashfree.com\/blog\/what-is-softpos\/\">What Is softPOS?<\/a><\/mark><\/strong>\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Seek_Quick_Redressals_From_Issuers\"><\/span><strong>Seek Quick Redressals From Issuers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nWith the introduction of PPI interoperability, consumers will now be able to seek redressal against any issues faced directly by the issuer. And, in the same mechanics as defined by the card network(s) or National Payments Corporation of India (NPCI)\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nThe<strong><mark style=\"background-color: rgba(0, 0, 0, 0);\"> <a href=\"https:\/\/www.rbi.org.in\/Scripts\/BS_ViewMasDirections.aspx?id=12156\" rel=\"nofollow\">RBI mandates this in their recent report<\/a><\/mark><\/strong> defining the guidelines that follow PPI Interoperability in India.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Higher_Use_Cases\"><\/span><strong>Higher Use Cases<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nBy making prepaid payment instruments interoperable in nature, consumers will have more power to leverage PPIs and enjoy more financial freedom.\n\n<!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} -->\n<h3><span class=\"ez-toc-section\" id=\"For_PPI_Issuers\"><\/span>For PPI Issuers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Becoming_Quasi-Banks\"><\/span><strong>Becoming Quasi-Banks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nWith the introduction of PPI interoperability, <a href=\"https:\/\/www.pwc.in\/industries\/financial-services\/fintech\/payments\/ppi-interoperability.html\" rel=\"nofollow\"><strong><mark style=\"background-color: rgba(0, 0, 0, 0);\">PPI issuers have become quasi banks in terms of payments<\/mark><\/strong>.<\/a> Meaning, they\u2019ll be able to offer many, if not all, banking services to consumers along with many additional benefits.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Better_Access_To_Payment_Infrastructure\"><\/span><strong>Better Access To Payment Infrastructure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nPPI issuers will enjoy better access to the Indian payments infrastructure. Moreover, their dependency on the bank (for many minor and major services, such as access, settlement, etc.) will also reduce significantly.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<h4><span class=\"ez-toc-section\" id=\"Additional_Sources_Of_Revenue\"><\/span><strong>Additional Sources Of Revenue\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nInteroperability brings additional sources of revenue to the plate for PPI issuers.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nThey can gain significantly in terms of interchange for UPI and prepaid cards, transaction costs, and via other similar methods.\n\n<!-- \/wp:paragraph --><!-- wp:image {\"id\":9311,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure><img data-recalc-dims=\"1\" height=\"443\" width=\"770\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2022\/05\/Additional-Sources-of-Income-1-1024x589.png?resize=770%2C443&#038;ssl=1\" alt=\"Additional sources of Income for PPI issuers\" \/><\/figure>\n<!-- \/wp:image --><!-- wp:paragraph -->\n\nHowever, they\u2019ll need to infuse additional investment to set up the necessary infrastructure to benefit from these additional revenue sources.\n\n<!-- \/wp:paragraph --><!-- wp:heading -->\n<h2><span class=\"ez-toc-section\" id=\"Challenges_PPI_Players_Need_to_Watch_Out_For\"><\/span>Challenges PPI Players Need to Watch Out For<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n\nWhile advantages are plenty, many challenges come along the way.\n\n<!-- \/wp:paragraph --><!-- wp:image {\"id\":9317,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2022\/05\/Challenges-PPI-Players.png?w=770&#038;ssl=1\" alt=\"Challenges PPI players need to watch out\" \/><\/figure>\n<!-- \/wp:image --><!-- wp:heading {\"level\":3} -->\n<h3><span class=\"ez-toc-section\" id=\"Provide_Satisfying_Customer_Support\"><\/span>Provide Satisfying Customer Support<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n\nOwing to the RBI guidelines, PPI players will need to build a robust customer support system that entertains even the tiniest of customer complaints.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nIf not done properly, one bad experience is enough to scare customers off to cash transactions and steer them from coming back.\n\n<!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} -->\n<h3><span class=\"ez-toc-section\" id=\"Easy_Onboarding_Processes\"><\/span>Easy Onboarding Processes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n\nEvery financial segment today is innovating its onboarding process.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nOwing to this, it is extremely necessary that even PPI players build a faster and easier onboarding process.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nThis will keep potential customers from considering other online financial options, especially opening digital accounts offered by <a href=\"https:\/\/www.cashfree.com\/blog\/neobanks-vs-traditional-banks-vs-challenger-banks\/\"><strong><mark style=\"background-color: rgba(0, 0, 0, 0);\">neobanks<\/mark><\/strong><\/a>.\n\n<!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} -->\n<h3><span class=\"ez-toc-section\" id=\"Improve_And_Simplify_KYC_Processes\"><\/span>Improve And Simplify KYC Processes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n\nEven though the KYC process today has improved manifold, there still exists a huge scope to upgrade and build a much better KYC process. PPI players need to tap into this space and build better and faster KYC solutions.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nFor instance, provide a quick, two-step online KYC process that helps onboard customers in a matter of seconds.\n\n<!-- \/wp:paragraph --><!-- wp:heading -->\n<h2><span class=\"ez-toc-section\" id=\"Boost_To_Digital_Payments_And_Greater_Financial_Inclusion\"><\/span>Boost To Digital Payments And Greater Financial Inclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n\nHere\u2019s how interoperability will transform the overall <strong><mark style=\"background-color: rgba(0, 0, 0, 0);\"><a href=\"https:\/\/www.cashfree.com\/blog\/the-payments-ecosystem-podcast\/\">payments ecosystem<\/a> <\/mark><\/strong>in the coming future, causing the below-mentioned changes, for good.\n\n<!-- \/wp:paragraph --><!-- wp:list -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul><!-- wp:list-item -->\n \t<li>Provide easy access to payment instruments such as cards, wallets, and UPI to the unbanked and underbanked population of the country<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>Increase financial inclusion and adoption of <strong><mark style=\"background-color: rgba(0, 0, 0, 0);\"><a href=\"https:\/\/www.cashfree.com\/blog\/keeping-india-ahead-in-digital-payments\/\">digital payment methods throughout the nation<\/a><\/mark><\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>With NPCI making UPI 2.0 live, peer-to-merchant transactions will significantly increase, even in tier 2 and 3 parts of India<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<ul>\n \t<li style=\"list-style-type: none;\">\n<ul>\n \t<li>The entire payments ecosystem will become more competitive, creating a larger playing field for the merchants and PPI players<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<!-- \/wp:list-item -->\n\n<!-- \/wp:list --><!-- wp:heading -->\n<h2><span class=\"ez-toc-section\" id=\"Interoperability_is_the_Road_To_The_Future\"><\/span>Interoperability\u00a0is the Road To The Future<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<!-- \/wp:heading --><!-- wp:paragraph -->\n\nAs cards and wallets become more functional and feature-rich in nature, thanks to the implementation of interoperability in PPIs, it\u2019s only a matter of time to see the PPI industry see a boom in its usage as UPI.\n\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n\nThe regulators and stakeholders are confident that this move will build a more secure, reliable, and robust payments system that will not only play a bigger role in the financial services ecosystem and benefit all the players involved.\n\n<!-- \/wp:paragraph --><!-- wp:image {\"id\":9322,\"sizeSlug\":\"large\",\"linkDestination\":\"custom\"} -->\n<figure><a href=\"https:\/\/cashfree.com\/payment-gateway-india\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=ppi_interoperability\"><img data-recalc-dims=\"1\" height=\"172\" width=\"770\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2022\/05\/cta1-1024x229.png?resize=770%2C172&#038;ssl=1\" alt=\"accept payments through e-wallets in less than 30 seconds\" \/><\/a>\n<h2 dir=\"ltr\" style=\"line-height: 1.38; margin-top: 18pt; margin-bottom: 6pt;\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_on_Prepaid_Payment_Instruments_PPIs\"><\/span>Frequently Asked Questions on Prepaid Payment Instruments (PPIs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 dir=\"ltr\" style=\"line-height: 1.38; margin-top: 14pt; margin-bottom: 4pt;\"><span class=\"ez-toc-section\" id=\"Is_KYC_mandatory_for_PPIs\"><\/span>Is KYC mandatory for PPIs?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;\">Yes, both small PPIs and full-KYC PPIs require KYC. Small PPIs require minimum KYC, meaning OTP verification, and full-KYC PPIs require complete KYC verification for higher limits and fund transfers.<\/p>\n\n<h3 dir=\"ltr\" style=\"line-height: 1.38; margin-top: 16pt; margin-bottom: 4pt;\"><span class=\"ez-toc-section\" id=\"Are_Prepaid_Payment_Instruments_PPIs_secure\"><\/span>Are Prepaid Payment Instruments (PPIs) secure?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;\">Yes, if it is issued by a company approved by the RBI. The RBI guarantees transaction security, KYC compliance, and procedures for resolving customer complaints.<\/p>\n\n<h3 dir=\"ltr\" style=\"line-height: 1.38; margin-top: 16pt; margin-bottom: 4pt;\"><span class=\"ez-toc-section\" id=\"What_is_interoperability_in_Prepaid_Payment_Instruments_PPIs\"><\/span>What is interoperability in Prepaid Payment Instruments (PPIs)?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p dir=\"ltr\" style=\"line-height: 1.38; margin-top: 0pt; margin-bottom: 0pt;\">It is a prepaid instrument that Reserve Bank of India has enabled for users. It is an e wallet that allows users to seamlessly transfer funds from one wallet to another user or spend the wallet balance for buying everyday essentials.<\/p>\n<\/figure>\n<!-- \/wp:image --><!-- wp:paragraph -->\n\n<!-- \/wp:paragraph -->","protected":false},"excerpt":{"rendered":"<p>In this blog, we will understand the concept of Prepaid Payment Instruments (PPIs) and PPI interoperability. We will also try to understand what it could mean to Indian businesses and masses. After demonetisation, the prepaid payments instruments (PPI) industry saw some massive growth. However, there were too many players in the market. Moreover, funds could<\/p>\n","protected":false},"author":29,"featured_media":9391,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_themeisle_gutenberg_block_has_review":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1,1383],"tags":[3684,1381],"class_list":["post-9288","post","type-post","status-publish","format-standard","has-post-thumbnail","category-all","category-payments","tag-digital-wallet","tag-payment-solution"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What are Prepaid Payment Instruments (PPIs): Meaning &amp; Benefits<\/title>\n<meta name=\"description\" content=\"Prepaid Payment Instruments (PPIs) are a convenient and secure way to make payments. We will also explain what PPI interoperability is.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cashfree.com\/blog\/ppi-interoperability\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What are Prepaid Payment Instruments (PPIs): Meaning &amp; Benefits\" \/>\n<meta property=\"og:description\" content=\"Prepaid Payment Instruments (PPIs) are a convenient and secure way to make payments. 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