RBI introduces a new type of Prepaid Payment Instrument (PPI) – upto ₹ 10,000/- for small value digital payments which can be used at local shops and retail outlets for the purchase of daily household goods and services.
The RBI in its Statement on Developmental and Regulatory Policies issued as part of Monetary Policy Statement dated December 5, 2019 had proposed to introduce a new type of Pre-Paid Payment Instruments (PPI) which can be used only for purchase of goods and services up to a limit of ₹10,000. The PPI was aimed to facilitate making only retails digital payments such as bill payments, merchant payments, etc.
RBI introduces a new type of Prepaid Payment Instrument (PPI) – upto ₹ 10,000/-
With a view to give impetus to small value digital payments and for enhanced user experience, RBI has decided to introduce a new type of semi-closed PPI with the following features:
-
Such PPIs shall be issued by bank and non-bank PPI Issuers after obtaining minimum details of the PPI holder.
-
The minimum details to vail such PPI include a mobile number verified with One Time Pin (OTP) and a self-declaration of name and unique identity / identification number of any ‘mandatory document’ or ‘officially valid document’ (OVD) listed in the Master Direction – Know Your Customer (KYC) Direction, 2016.
-
These PPIs shall be reloadable in nature and issued in card or electronic form. Loading / Reloading shall be only from a bank account.
-
The amount loaded in such PPIs during any month shall not exceed ₹ 10,000 and the total amount loaded during the financial year shall not exceed ₹ 1,20,000.
-
The amount outstanding at any point of time in such PPIs shall not exceed ₹ 10,000.
-
These PPIs shall be used only for purchase of goods and services and not for funds transfer.
-
PPI issuers shall provide an option to close the PPI at any time and also allow to transfer the funds ‘back to source’ (payment source from where the PPI was loaded) at the time of closure.
-
The features of such PPIs shall be clearly communicated to the PPI holder by SMS / e-mail / post or by any other means at the time of issuance of the PPI / before the first loading of funds.
-
The minimum detail PPIs existing as on the date of this circular can be converted to the above type of PPI, if desired by the PPI holders.
- TDS deductors given relief for non deduction of TDS at higher rate for inoperative PANs
- Reassessment order quashed due to error in personal hearing video conferencing link
- Assessee may show that it was over assessed under erroneous impression of law
- Education Cess cannot be allowed as an expenditure in view of later amendment – SC
- Cash deposit cannot be shifted from live person to a deceased just because he was joint holder
 upto ₹ 10,000/- for small value digital payments){kind=link}