The Reserve Bank Of India (RBI) has introduced a new type of semi-closed Prepaid Payment Instrument (PPI) - PPIs upto Rs 10,000/- with loading only from bank account. The central bank says that to give impetus to small value digital payments and for enhanced user experience; it has been decided to introduce this PPI. 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.
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