RBI to introduce new prepaid instrument for digital payments

Mumbai: The Reserve Bank of India (RBI) will introduce a new type of prepaid payment instrument (PPI) which could be used only for purchase of goods and services up to a limit of Rs 10,000.

Accordingly, the loading of such PPI will be only through a bank account and it could be used for making only digital payments such as bill payments and merchant payments, among others.

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“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,” the RBI said in a statement on developmental and regulatory policies.

PPIs are financial instruments that facilitate the purchase of goods and services against the value stored on such instruments.

(IANS)