RBI Decision: The Reserve Bank of India (RBI) has asked prepaid payment instrument (PPI) issuers in the non-banking sector to keep money in their wallets and cards through credit facilities or pre-defined Do not put through the borrowing limit. PPI instruments facilitate the purchase of goods and services, financial services and remittance facilities equivalent to the value of deposits.
What is RBI’s Master Direction
Central Bank has introduced ‘master’ on prepaid payment instruments. Issuing instructions, it has been said that PPIs can be ‘loaded’ by cash, bank accounts, credit and debit cards, PPIs and other payment instruments. & ‘reload’ has been approved to do so. This amount should be in Indian currency only. Sources said the RBI has informed all authorized non-bank PPI issuers regarding this restriction.
<p style="text-align: justify;"According to sources, RBI has asked PPI issuers to 'load' PPIs from credit facilities or pre-determined borrowing limits. does not allow. It has said that if such a trend continues, then it should be stopped immediately.
Prohibition on putting money through loan facility
PwC India’s ‘Payments Transformation Leader’ Mihir Gandhi said that putting money through loan facility has been banned. “One credit facility was used for multiple prepaid wallets and cards. This move will affect the business model of some fintech companies.’
Issuance of PPIs in the form of paper vouchers also prohibited
The central bank has banned the issuance of PPIs in the form of paper vouchers. PPIs are issued in the form of cards, wallets and any other means of transactions.
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