Soon, new instrument linked to your bank account for digital payments
To further facilitate the usage prepaid payment instruments (PPI), the Reserve Bank of India or RBI today proposed introduction of a new type of PPI which can be used only for purchase of goods and services up to a limit of ₹10,000. The loading/reloading of such PPI will be only from a bank account and used for making only digital payments such as bill payments, merchant payments, etc, the RBI said.
PPIs are instruments that facilitate purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments. PPIs can be issued as cards, wallets, and any such form/instrument which can be used to access the PPI and to use the amount therein.
PPIs have been playing an important role in promoting digital payments, the RBI said.
“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.