New Delhi, Nov 24: The Reserve Bank of India (RBI) on Wednesday doubled the monthly issuance limits of Prepaid Payment Instruments (PPI) from Rs.10,000 to Rs. 20,000.
The move is aimed at easing the cash crunch post the government's demonetisation move. Prepaid Payment Instruments are methods that facilitate purchase of goods and services against the value stored on such instruments.
The prepaid instruments can be issued as smart cards, magnetic stripe cards, internet accounts, online wallets, mobile accounts, mobile wallets, paper vouchers and any such instruments used to access the prepaid amount.
With the enhancement of limits, consumers can now pay digitally for all essential day-to day items, make utility bill payments, travel bookings and other payments at over 1 million touch-points of these PPIs spread all across the country.
Consumers can also make use of these prepaid instruments to make online payments and transfer money to bank accounts up to Rs. 1,00,000 in a month by giving full KYC details.
To meet the needs of small and micro businesses through digital means, RBI has now allowed merchants to accept up to Rs 50,000 in a month using prepaid wallets.
In order to avail this facility small and micro businesses need only provide a self-declaration in respect of their status and details of their bank accounts.
Payments Council of India and Internet And Mobile Association of India have welcomed this step taken by RBI.