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News You Can Use: Now, New Payment Mode For Your Digital Payments

Team BankBazaar

In a move that will further ease bill and merchant payments for you, the Reserve Bank of India (RBI) announced the launch of a new prepaid payment instrument (PPI) during its monetary policy review.

The new PPI will be used only for the purchase of goods and services up to a limit of Rs. 10,000. Acknowledging the importance of PPIs, the central bank said, “PPIs have been playing an important role in promoting digital payments. To further facilitate its usage, it is proposed to introduce a new type of PPI which can be used only for the purchase of goods and services up to a limit of ₹10,000.”

The central bank further added that the loading/reloading of such PPIs will be only from a bank account and used for making only digital payments such as bill payments, merchant payments, etc. Such PPIs can be issued on the basis of essential minimum details sourced from the customer. Instructions in this regard will be issued by December 31, 2019.

In the last monetary policy meet, the RBI had announced the appointment of Ombudsman for Digital Transactions to redress the customer complaints against the prepaid instrument issuer.

As per the RBI, PPIs facilitate the purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments. PPIs that can be issued in the country are classified under three types viz. Closed System PPIs, Semi-closed System PPIs, and Open System PPIs.

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