The Reserve Bank of India ( RBI ) has introduced a new type of semi-closed Prepaid Payment Instrument (PPI) – PPIs up to Rs. 10,000/- with loading only from the bank account to promote Digital Payments.
In a communication issued by the RBI said that, To give impetus to small value digital payments and for enhanced user experience, it has been decided to introduce a new type of semi-closed PPI with the following features:
- a) Such PPIs shall be issued by the bank and non-bank PPI Issuers after obtaining minimum details of the PPI holder.
- b) The minimum details shall necessarily include a mobile number verified with One Time Pin (OTP) and a self-declaration of name and unique identity/identification number of any ‘mandatory document’ or ‘officially valid document’ (OVD) listed in the ‘Master Direction – Know Your Customer (KYC) Direction, 2016’ issued by Department of Regulation, Reserve Bank of India, as amended from time to time.
- c) These PPIs shall be reloadable in nature and issued in card or electronic form. Loading / Reloading shall be only from a bank account.
- d) The amount loaded in such PPIs during any month shall not exceed Rs.10,000 and the total amount loaded during the financial year shall not exceed Rs.1,20,000.
- e) The amount outstanding at any point of time in such PPIs shall not exceed Rs.10,000.
- f) These PPIs shall be used only for the purchase of goods and services and not for funds transfer.
- g) PPI issuers shall provide an option to close the PPI at any time and also allow to transfer the funds ‘back to source’ (payment source from where the PPI was loaded) at the time of closure.
The RBI also said that, The features of such PPIs shall be clearly communicated to the PPI holder by SMS / email/post or by any other means at the time of issuance of the PPI / before the first loading of funds.
The minimum detail PPIs existing as on the date of this circular can be converted to the above type of PPI, if desired by the PPI holder. The PPI-MD is being modified to introduce this new type of PPI. The other instructions contained in the PPI-MD will be applicable to this type of PPI also, the RBI also said.Subscribe Taxscan AdFree to view the Judgment