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RBI Eases Rules on Prepaid Payment Instruments
January 13, 2017
A PPI is an instrument that facilitates purchase of goods and services against the value of money stored in them. The payment is made by the holder of such instruments by way of cash, debit to a bank account or credit card.
RBI has taken a significant step towards facilitating a larger adoption of digital payments by allowing banks to include unlisted companies and/or public entities for onward issuance of Prepaid Payment Instruments to their staff or contract workers. Therefore, PPIs can now be issued by banks to all entities that maintain an account with them and provide an undertaking that they are not availing this facility from any other bank.
The banks are also mandated to facilitate transfer of funds from these instruments to the accounts of their holders.
