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RBI introduces new prepaid payment instrument(0
RBI introduces new prepaid payment instrument(0

Mumbai, Dec 25 (TIWN) The Reserve Bank has introduced a new type of prepaid payment instrument (PPI) which could be used only for purchase of goods and services up to a limit of Rs 10,000 per month.

In a bid to give increased impetus to small ticket digital payments RBI on Tuesday has introduced a new Prepaid Payment Instrument (PPI) which will come with a monthly rechargeble limit of Rs 10000 and can be used only for making retail payments.  "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..." the central bank announced in press release on Tuesday. "These PPIs shall be used only for purchase of goods and services and not for funds transfer."  The newly introduced payment instrument can be issued by banks and existing non bank PPI players. These companies would be able to verify credentials of customers seeking to open their PPI accounts using an OTP sent to user's verified mobile number and a digital identification document recognized by the Department of Revenue, the banking regulator said.  "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," according to the central bank.

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