RBI Updates 2015- Prepaid Payment Instruments (PPI)

    RBI Updates 2015- Prepaid Payment Instruments (PPI)
    RBI Updates 2015- Prepaid Payment Instruments (PPI):
    Important features of Prepaid Payment Instruments (PPI) were given here below, under the RBI Updates 2015. Candidates those who are preparing for upcoming RBI Assistant Exam 2015 can use this material.

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    RBI proposes to introduction PPI for Mass Transit Systems:
    The RBI, on 28 May 2015, proposes to introductionPrepaid Payment Instruments (PPI)for Mass Transit System (PPI-MTS). These PPI-MTS will be semi-closed instruments that will be used facilitate the migration to electronic payments in live with the country’s vision of moving to a less-cash society. Such PPIs will be reloadable instruments subjected to an outstanding limit of 2000 rupees at any point of time.

    Main features of Prepaid Payment Instruments (PPIs)
    • The semi-closed PPIs will be issued by the mass transit system operator (PPI-MTS) who will be authorized under the Payment and Settlement System Act, 2007.
    • The PPI-MTS will necessarily contain the Automated Fare Collection application related to the transit service.
    • Such PPI-MTS can be used by other merchants whose activities are allied to or are carried on within the premises of the transit system only.
    • The PPI-MTS issuer will ensure on-boarding of merchants following due procedure applicable to any other PPI issuer.
    • The PPI-MTS will have minimum validity of six months from the date of issue.
    • The issuer may decide upon the desired level of Know Your Customer (KYC) if any, for such PPIs.
    • No cash-out or refund will be permitted from these PPIs.
    • Funds transfer under Domestic Money Transfer (DMT) will also not be applicable to these PPIs.

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