31 December, Mumbai
Reserve Bank Saturday extended the period of enhanced Prepaid Payment Instruments (PPI) limit of Rs 20,000 as part of efforts to promote digital payments.
RBI said in a notification that keeping in view that Bank is undertaking a comprehensive review of the guidelines and framework for PPI issuance in the country, it has been decided to extend the measures till the completion of review of the PPI guidelines.
To meet the transactional needs of the public through digital means, RBI had introduced additional measures by way of special dispensation for small merchants and enhancement in limits for semi-closed PPIs. While balance in such PPIs cannot exceed Rs 20,000 at any point of time, the merchants can transfer funds from such PPIs to their own linked bank accounts up to Rs 50,000 per month, without any limit per transaction.
At present, 47 non-bank entities and 45 banks are operating payment systems for PPI.