RBI vide notification dated December 24, 2019, permitted all the Prepaid Payment Instrument Issuers to introduce a new type of semi-closed PPIs. These cards can be used only for the purchase of goods and services and not for funds transfer.
The new PPIs will have the following features:
- The Semi -closed Pre-paid instrument (PPI) up to ₹ 10,000/- can be issued with loading/reloading only from a bank account.
- Minimum details required for issuing PPI shall necessarily include the following
- a mobile number verified with One Time Pin (OTP)
- a self-declaration of name and unique identity /identification number of any ‘mandatory document’ or
- ‘officially valid document’ (OVD) such as Passport, driving licence, voters’ ID card, PAN card, Aadhaar letter issued by UIDAI and Job Card issued by NREGA signed by a State Government official, etc. as 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.
- The minimum details as above already available with the existing PPI can be converted to the above type of PPI to be issued, if desired so by the PPI holder.
- Such PPIs cards are reloadable in nature which may be issued either in card or in electronic form. Loading / Reloading shall be only from a bank account.
- The amount loaded in a PPI during any month shall not exceed ₹ 10,000 and the total amount loaded during the financial year shall not exceed ₹ 120000 (Rupees one lac and twenty thousand).
- The amount outstanding in a particular PPI cannot exceed ₹ 10,000.
- PPI issuers offer 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.
As per the RBI guidelines, it is obligatory on the part of the issuer to communicate the features of the above type of PPIs to the PPI holders 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 other instructions contained in the RBI’s PPI-MD will be applicable to this type of PPI also.
