Now You Can Deposit up to Rs. 20000 in Your Mobile Wallets

Prayank

Demonetisation has been a bane for the common man, but a boon for mobile wallet companies who have seen a significant surge in their business after PM Modi-led NDA government made the announcement earlier this month.

Convinience of pay using digital wallets is unparalleled | Shutterstock
Shutterstock

For those who haven’t submitted their KYC documents, the upper limit to deposit in your mobile wallets was Rs. 10,000 in any given month.

According to a new circular issued by the Reserve Bank of India, the monthly limit has been increased to Rs. 20,000. These new guidelines will be applicable until December 30, 2016, and are subject to review.

The limit for those who’ve submitted their completed KYC documents remains unchanged at Rs. 1 lakh.

In the circular dated November 22, the RBI has issued two ‘special measures to incentivise Electronic Payments’ — first is to enhance the limit on Pre-paid payment instruments (PPI) and second is special measures for merchants associated with these PPIs.

Guidelines for Merchants Associated with Mobile Wallets

The Reserve Bank of India recognises merchants as the entities who accept payments from mobile wallets in exchange for the sale of goods and services to the customers. The RBI laid down a few guidelines as follows:

  • In addition to their bank account details, the merchants have to give a self-declaration for their status as a merchant.
  • Merchant status will only be awarded to the concerned entity after verification and validation of their bank account details.
  • Merchants can only transfer funds from their mobile wallets to the validated bank account linked to their account.
  • These transfers to bank accounts don’t have a limit per transaction but can not exceed Rs. 50,000 in a month.
  • While there is no minimum balance, Rs. 20,000 is the maximum balance a merchant can carry in his account.
  • Concerned Mobile Wallet companies have to clearly identify such PPIs in their systems for the ‘purpose of maintenance of escrow, reporting and MIS requirements’.
  • Credit to a merchant’s account should only occur after a sale is made.

Two months back JustDial received a semi-closed wallet license from the government. Currently, there are 45 banks and 47 non-bank entities operating in the payment ecosystem.

The Rs. 50,000 monthly limits might seem less for merchant transactions to their own bank accounts since bank account details of merchants need to be registered and verified prior to their registration — making it easier to track if money is being funnelled into a merchant’s account.

How the RBI plans to counter loopholes arising out of mobile wallet merchant guidelines is yet to be seen.

Another thing to note here is that with so many merchants across the country, it’ll be difficult to keep in check whether or not a particular payment is made in exchange for goods or service provided by the merchant.

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Prayank

Written By

Prayank

Bike enthusiast, traveller, ManUtd follower, army brat, word-smith; Delhi University, Asian College of Journalism, Cardiff University alumnus; a journalist breathing tech these days.