Want to shop for Rs 10,000? RBI has announced new option for you: Check Details

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Updated: December 5, 2019 12:53:31 PM

RBI announces New Pre-Paid Payment Instruments (PPI): Reserve Bank of India today announced a new type of PPI which can be used for purchasing goods and services up to Rs 10,000.

New shopping and payment option announced by RBINew shopping and payment option announced by RBI. Representational image

RBI announces New Pre-Paid Payment Instrument (PPI): Reserve Bank of India today announced a new type of PPI which can be used for purchasing goods and services up to Rs 10,000. Money will be loaded or reloaded in the new PPI only from a bank account for making digital payments on, including bill payments, merchant payments etc.
“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 ₹10,000,” RBI said today in Statement on Developmental and Regulatory Policies – December 5, 2019.

“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,” it added.

The central bank further said that the new PPI could be used on the basis of essential minimum details sourced from the customer.

RBI will issue further instructions in this regard by December 31.

What is PPI?

RBI defines PPI as an instrument which facilitates “purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments.”

Three types of PPIs are currently issued in the country: Closed System PPIs; Semi-closed System PPIs; Open System PPIs. PPIs can be issued in the form of cards, mobile wallets

WATCH VIDEO | What is RBI Repo Rate? Key monetary policy bank interest rate cut, increase explained

The RBI today kept the REPO Rate unchanged. “On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (December 5, 2019) decided to: keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15 per cent. Consequently, the reverse repo rate under the LAF remains unchanged at 4.90 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 5.40 per cent. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target,” the central bank said in a statement.

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