RBI to introduce new prepaid payment instrument for digital transactions up to Rs 10,000

The Reserve Bank of India (RBI), in its Statement on Development and Regulatory Policies, has proposed to introduce a new type of prepaid payment instrument (PPI) with a limit of up to Rs 10,000.

As per the policy statement, RBI said, “Prepaid Payment Instruments (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 purchase of goods and services up to a limit of Rs 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. Such PPIs can be issued on the basis of essential minimum details sourced from the customer.”