New PPI launched by RBI for digital payments of upto Rs 10,000
To give impetus to small value digital payments and for enhanced user experience, RBI has decided to introduce a new type of semi-closed PPI for digital payments of upto Rs 10,000.
To give impetus to small value digital payments and for enhanced user experience, RBI has decided to introduce a new type of semi-closed PPI with the following features:
- 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’ issued by Department of Regulation, Reserve Bank of India, as amended from time to time.
- These PPIs shall be reloadable in nature and issued in card or electronic form. Loading / Reloading shall be only from a bank account.
- 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.
- The amount outstanding at any point of time in such PPIs shall not exceed Rs 10,000.
- These PPIs shall be used only for purchase of goods and services and not for funds transfer.
- PPI issuers shall provide an option to close the PPI at any time and also allow to transfer the funds ‘back to source’ (payment source from where the PPI was loaded) at the time of closure.
- 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 minimum detail PPIs existing as on the date of this circular can be converted to the above type of PPI, if desired by the PPI holder.