Customers Will Have Wide Array Of CBDC Wallets

The move widens the playing field and can turn CBDC into a mainstream payment option in the foreseeable future

V. Balasubramanian, CEO, FSS Cash Tech

FinTech BizNews Service    

Mumbai, April 5, 2024: With regard to the RBI Monitory Policy announcement by RBI Governor Shaktikanta Das today, V. Balasubramanian, CEO, FSS Cash Tech, has shared his views on the CBDC front. Financial Software and Systems (FSS) is a globally leading provider of payments technology and a transaction processor: "RBI’s move to allow non-bank payment system operators to offer CBDC wallets is a step in the right direction. CBDC holds the potential to greatly increase financial inclusion and enable faster, cheaper transactions. For higher adoption of CBDC, it is important that it is accessible and usable by diverse sections of our society. This will be further enhanced when customers have a wide array of CBDC wallets to choose from once non-bank payment system operators foray into this area. This move widens the playing field and can turn CBDC into a mainstream payment option in the foreseeable future."

RBI Governor Shaktikanta Das made a few announcements today in the MPC meeting wherein he mentioned that RBI will permit the use of third-party UPI apps for making UPI payments from PPI wallets. PPI wallet holders will no longer have to be completely dependent on the PPI issuer, but they can use any other third-party app that operates under UPI.

Dilip Modi, Founder, Spice Money, has shared his noteworthy thoughts on the announcement: We want to applaud the Reserve Bank of India for its forward-thinking approach and congratulate the regulatory body on completing its 90th anniversary earlier this week. The RBI has consistently led the way in guiding India's economy towards stability. RBI’s announcement to expand the access of UPI for Prepaid Payment Instruments (PPIs) through third-party applications, during the MPC meeting held today is a significant step towards financial inclusion. It grants PPI users the ability to seamlessly integrate their accounts with a wide range of UPI-enabled services, mirroring the convenience and flexibility traditionally reserved for standard bank account holders. This will not only simplify the payment process for PPI users but also open up a plethora of digital payment opportunities previously inaccessible to them, further enhancing customer convenience and boosting the adoption of digital payments, especially among small businesses. This move helps further Spice Money's mission to extend digital payment and financial services to nanopreneurs and customers in rural and semi-urban India.

Furthermore, we appreciate the RBI's ongoing efforts to simplify regulations and reduce compliance burdens. These initiatives not only demonstrate the regulator's commitment to enhancing the ease of doing business in the fintech sector but also pave the way for greater innovation and growth opportunities.”




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