RBI doubles cap on PPIs (Prepaid Payment Instruments) to Rs. 20,000

» RBI has increased the per month limit of (PPIs) Prepaid Payment Instruments to Rs. 20,000 from Rs. 10,000 and to Rs. 50,000 for merchant bank.

» Reserve Bank of India made these changes due to sudden increase in demand for digital wallets (especially mobile wallets) after Government declared demonetization of Rs. 500 and Rs. 1000 currency notes.

» Main Facts The prepaid Prepaid Payment Instruments could be also offered to merchants if they submit a self-declaration in respect of their status and bank account and also to be kept on record by the issuer.

» Funds transfer from such Prepaid Payment Instruments will be allowed only to the merchant’s own linked bank account and upto an amount of Rs. 50,000 per month, without any limit per transaction.

» This resolution will increase mobile wallet transactions following the withdrawal of high-value notes.