Several experts said the notification was for non-bank PPI issuers, so there is ambiguity around whether bank-led PPIs will be exempted from this
Earlier this week, a Reserve Bank of India (RBI) notification shook the fintech industry. The RBI said the master directions on prepaid payment instruments (PPIs) do not permit loading of PPIs from credit lines. There is a lot of confusion among players regarding the contents of the notification, and various industry associations are looking to approach the regulator to get clarity on the matter.
What are PPIs?
PPIs are instruments that facilitate the purchase of goods and services, conduct of financial services, enable remittance facilities, etc., against the value stored in them. As of April 5, 2021, the RBI has permitted 57 banks to issue and operate PPIs in India. Besides these, there are over 35 non-bank PPI issuers in
First Published: Jun 23 2022 | 9:35 PM IST