With an aim to give impetus to small value digital payments and for enhanced user experience, the Reserve Bank of India (RBI) has introduced a new semi-closed prepaid payment instrument (PPI) which can be used for transaction of goods and services up to a limit of Rs 10,000. These PPIs shall be reloadable in nature and issued in card or electronic form. Loading / Reloading shall be only from a bank account.
The main features of these instruments are: such PPIs shall be issued by bank and non-bank PPI Issuers after obtaining minimum details of the PPI holder. 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’ among others.
As per the RBI, 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. Besides, the amount outstanding at any point of time in such PPIs shall not exceed Rs 10,000 and these PPIs shall be used only for purchase of goods and services and not for funds transfer.