Skip to main content

RBI introduces new pre-paid payment instrument upto Rs. 10,000 for small digital payments

Join our telegram group. Join

Download our app and stay updated on latest news from GST/Income Tax and Financial Areas. Download


 RBI (Reserve Bank of India) has now introduced a new option for Indian consumers to make small digital payments at local shops and retail outlets.
RBI on Tuesday has introduced a new Prepaid Payment Instrument (PPI) which will be introduced with a monthly recharge limit of INR10,000.00 and can be used ONLY for making retail payments.

"To give impetus to small value digital payments and for enhanced user experience, it has been decided to introduce a new type of semi-closed PPI..." the central bank announced in press release on Tuesday. "These PPIs shall be used only for purchase of goods and services and not for funds transfer."

The newly launched PPIs can be issued by banks as well as existing non-bank PPI players. These companies would be able to verify credentials of customers seeking to open PPI accounts using method of OTP verification , such OTP will be sent to the user's verified mobile  number and digital identification document recognized by the Department of Revenue, the banking regulator said."The minimum details shall necessarily include a mobile number verified with One Time Pin (OTP) and a self-declaration of name and unique identity/ identification number of any ‘mandatory document’ or ‘officially valid document’ (OVD) listed in the ‘Master Direction - Know Your Customer (KYC) Direction," according to the central bank.

The move will come as a boost to wallet companies such as Paytm and Phonepe that have reeled due to high costs of KYC compliance since the Supreme court denied such companies access to Aadhar database to complete full KYC authentication.

The PPI can be used for a monthly limit of Rs. 10000 and the amount can only be uploaded only from bank account linked with customer's verified mobile number. Furthermore, RBI has also fixed an annual limit of Rs 1.2 lakh that can be recharged on these accounts.

RBI governor Shaktikanta Das had spoken about the possible launch of such an instrument while making his Monetary Policy speech on December 5. The governor had emphasized on the need for a seamless, easy to issue payment instrument to increase the use of digital payments at small merchant locations where typically the failure rate of transactions are known to be high.

Comments

Post a Comment

Popular posts from this blog

Quick Reference flow chart for Sec 194Q of TDS effective from July 1st , 2021

Post a Comment
Read more

IT Dep. conducts search on a “wellness group” in Chennai; unaccounted cash of Rs. 409 crore unraveled

(Disclaimer : Taxmitr India does not own this content. This content contains extracts from this article of Financial Express  ) In a major crackdown against the tax evasion, the income tax department carried out raids at several places linked to wellness guru Kalki and his son. The raids were conducted at several locations in Varadaiahpalem in Andhra Pradesh and also in Chennai and Bangalore. The Income Tax Department conducted searches on a group of trusts and companies that run year-round wellness courses and training programmes at several locations in Andhra Pradesh, Karnataka and Tamil Nadu, the Central Board of Direct Taxes (CBDT) said in a statement. “A preliminary estimate of such unaccounted cash receipts is Rs. 409 crore from FY 2014-15 onwards. Such unaccounted cash receipts are also evidenced by huge quantities of cash and other valuables found at the residences of the founder and his son, and at one of the campuses,” the CBDT said. Click here to read complete ...
Post a Comment
Read more

GST returns not filed? Your bank account can be frozen by taxman

Join our telegram group. Join Download our app and stay updated on latest news from GST/Income Tax and Financial Areas.   Download According to a recent report in TOI a new set of rules have been green lit to GST authorities as a measure to ensure better compliance with GST rules. With a large number of GST registered entities failing to file GST returns on time the rules will  enable GST-authorities to attach your property and banks accounts if despite repeated reminders you fail to file tax returns. According to the news GST officers have been instructed to go hard on such defaulters. The process to nudge the entity and it's officials will begin 3 days ahead of the deadline for filling GSTR-3A of the final returns. The due date for the same us by the 20th of every month . Post the due date  a system-generated message will be sent to all the defaulters. If the entity fails to comply, five-days after the due date, an electronic notice will be served...
Post a Comment
Read more