RBI proposes to fix upper limit in PPIs at Rs 1 Lakh

The RBI proposed to fix the upper limit for Pre-paid Payment Instruments (PPIs) at Rs 1 lakh in view of growing usage of PPIs for a purchase of goods and services.

The central bank has sought comments on draft circular on Master Directions on Issuance and Operation of Pre-paid Payment Instruments (PPIs) in India till March 31, 2017. 

As per the draft the amount in a PPI should not exceed Rs 1 lakh at any point of time if the customer provides full KYC and Rs 20,000 if the customer provides minimum KYC details to the PPI issuing entity. PPIs could be loaded/reloaded by cash, by debit to a bank account, by credit and debit cards, and other PPIs. 

Takeaways from above News-
  • PPIs are payment instruments that facilitate a purchase of goods and services, including financial services, remittance facilities against the value stored on such instruments.
  • RBI head office is in Mumbai
  • RBI was established on 1 April 1935
  • Urjit Patel is the 24th governor of RBI after Raghuram Rajan.

 If you have any other takeaways, do share with us in the comment section

Source- The Economic Times

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