New Delhi. The Reserve Bank of India (RBI) has given a new direction to Fintech startups. In fact, RBI has asked the prepaid payment instruments ie PPI issuers of the non-banking sector not to put money in their wallets and cards through the credit facility.
Wallets and prepaid cards are examples of PPIs. The central bank has issued ‘Master’ Directions (PPI-MD) on Prepaid Payment Instruments, allowing PPIs to be ‘loaded’ and ‘reloaded’ by cash, bank accounts, credit and debit cards, PPIs and other payment instruments. has been given. This amount should be in Indian currency only.
Sources said that the RBI has informed all authorized non-bank PPI issuers about this restriction. According to sources, RBI has told PPI issuers that Master Directions does not allow PPIs to be ‘loaded’ from the credit facility. He has said that if such a trend continues, then it should be stopped immediately.
There may be an impact on the business model of some fintech companies,
said Mihir Gandhi, ‘Payments Transformation Leader’ of PwC India, that the transfer of money through the credit facility has been banned. “One credit facility was used for multiple prepaid wallets and cards. This move will affect the business model of some fintech companies.
Ban on Issuance of PPIs in the form of
Paper Vouchers The central bank has banned the issuance of PPIs in the form of Paper Vouchers. PPIs are issued in the form of cards, wallets and any other means of transactions.