The contribution of Prepaid Payment Instruments (PPI) will rise to 30-40 percent over 5 years from less than 10 percent now on the Reserve Bank push, as per PCI.
RBI came out with the third set of reforms in PPI yesterday to make it interoperable with all existing payment instruments, on par with acceptance of debit/credit cards in a phased manner.
This would ensure that PPIs contribution to digital payments from current share of less than 10 percent can move to 30-40 percent in the next 5 years.
The Council praised the regulator for a progressive and positive set of guidelines.
It however said a concern is that even the low usage wallets with limited merchant transaction functionality are required to do a KYC beyond 12 months.
"This adds friction to customers and costs to issuer. In line with international guidelines, a framework of proportional KYC could have been adopted," it said.
PCI is the representative body of PPI issuers.
RBI guidelines mark the 10 year anniversary to the industry and seem to be a true reflection of a collaborate approach for the industry.