RBI allows co-operative banks to issue mobile wallets.
The Reserve Bank of India (RBI) has allowed co-operative banks, who are permitted to install ATMs and issue debit cards, to also issue prepaid payment instruments PPIs like mobile wallets.
In a notification issued late on 25 May 2017, RBI laid down strict norms and conditions to be followed by co-operative banks before permitting them to issue wallets for utility bill payments and other activities up to a limit of Rs 10,000.
"It has been decided to permit all licenced co-operative banks having their own ATM network to issue semi-closed PPIs,".
The apex bank also laid down various criteria like banks should be core banking or CBS compliant, with net non-performing assets being less than 3 per cent and also being profitable in the previous financial year.
