The Reserve bank of India through its Notification dated 24th December 2019 has introduced a new type of semi-closed prepaid payment instrument (PPI) which can be used for purchase of goods and services upto a limit of Rs. 10,000 and not for fund transfers. This PPI has been introduced in furtherance of Statement on Developmental and Regulatory Policies issued by the RBI.
Key Highlights of the prepaid payment instrument:
- PPIs shall be issued by bank and non-bank PPI Issuers after obtaining of essential minimum details such as mobile number verified with OTP AND a self-declaration of name and unique identity / identification number of any ‘mandatory document’ or ‘officially valid document’ (OVD) listed in the KYC Direction of the PPI holder.
- The amount loaded in such PPIs during any month shall not exceed ₹ 10,000 and the total amount loaded during the financial year shall not exceed ₹ 1,20,000. And the amount outstanding at any point of time in such PPIs shall not exceed ₹ 10,000.
- PPI shall be Issued as a card or in electronic form.
- PPI issuers shall provide an option to close the PPI at any time and also allow to transfer the funds ‘back to source’.
- The features of such PPIs shall be clearly communicated to the PPI holder by SMS / e-mail / post or by any other means at the time of issuance of the PPI / before the first loading of funds.
The PPI-MD is being modified to introduce this new type of PPI.
Click here to read the Notification.
