The Reserve Bank of India has established a new type of PPI, which can only be used for the purchase of products or services up to a monthly limit of Rs 10,000.
“It was decided to introduce a new type of semi-closed PPI to enhance low-value digital payments and enhanced user experience,” RBI said in a Tuesday circular.
The PPIs are financial tools that allow the purchase by a value stored on these tools of products and services.
According to the circular, after receiving the holder’s minimum information, such PPIs are provided by the client and not by the bank ‘ PPI Issuers.’
“The amount charged in these PPIs shall not surpass Rs 10,000 during the month and not reach the cumulative loaded value during the financial year, Rs 1,20,000,” said the circular.
The PPI issuers shall, in their circular, provide an alternative for “closures” to the instrument and also for the movement of’ back to source ‘ funds while closing at any period.” “The sum remaining at all times in these PPIs shall not surpass 10000 R.
“In compliance with Section 18 of Section 10(2) of the Payment and Settlement Systems Act, 2007 this Directive shall be released and shall be valid from the date of issuance of the circular,” the circular continued.