RBI
Liberalises Secondary Money Markets – Rs.20,000 of
Promissory Notes (Prepaid Payment Instruments) Allowed during Demonetisation
Period of 21 Nov to 30 Dec
In order to meet the transactional needs of the
public through digital means, the Reserve Bank has introduced additional
measures by way of special dispensation for small merchants and enhancement in
limits for semi-closed Prepaid Payment Instruments (PPIs).
A special dispensation has now been enabled for
small merchants whereby PPIs issuers can issue PPIs to such merchants. 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 upto Rs.
50,000/- per month, without any limit per transaction. Merchants only need to
provide a self-declaration in respect of their status and details of their bank
account.
The limit of semi-closed PPIs issued with minimum
details has been enhanced to Rs. 20,000/- from the
existing Rs. 10,000/-. The total value of reloads
during any given month has also been enhanced to Rs.
20,000.
Extant instructions for other categories of PPIs
remain unchanged. Full KYC PPIs with balance upto Rs. 1,00,000/- can continue to be
made available by authorised PPI issuers.
The above measures will be effective from November
21, 2016 till December 30, 2016, subject to review.
The earlier PPI guidelines did not specifically
provide for opening of PPIs for such merchants as a separate category and the
limit for semi-closed PPIs issued with minimum details was Rs.10,000.
Special Measures to Incentivise Electronic Payments
–
(i) Enhancement in issuance limits for Pre-Paid
Payment Instruments (PPIs) in India
(ii) Special
measures for merchants
[Ref: RBI/2016-17/150 -
DPSS.CO.PD.No.1288/02.14.006/2016-17 dated November 22, 2016]
Following the withdrawal of legal tender
characteristics of existing Rs.500/- and Rs.1000/- Bank Notes (Specified Bank
Notes – SBN), in order to facilitate the adoption of digital payments, it has
been considered necessary to introduce the following special measures in
partial modification of Master Circular DPSS.CO.PD.PPI.No.01/02.14.006/2016-17
dated July 01, 2016 on Issuance and Operation of Pre-paid Payment Instruments
in India.
(i) Enhancement in PPI limits:
a) The limit
of semi-closed Prepaid Payment Instrument (PPI) that can be issued under Para
7.2 (i) of the Master Circular on issuance and
operations of PPIs in India has now been enhanced from Rs.10,000/- to Rs. 20,000/-.
b) The total
value of reloads during any given month shall also not exceed Rs. 20,000/-
c) All other
extant instructions in this regard shall remain unchanged.
(ii) Special
dispensation for merchants:
As per the extant PPI guidelines, merchants are
defined as establishments who accept the PPIs issued by PPI issuer against the
sale of goods and services. As a special dispensation for small merchants, PPI
issuers can now issue PPIs to such merchants subject to the following:
a) Merchants shall give a self-declaration in
respect of their merchant status and details of their own bank account, which
shall be kept on record by the issuer.
b) PPIs can
be issued to such willing merchants only after due verification and validation
of their bank account details.
c) Inflows of
funds / credit to such PPIs shall emanate only from sale transactions of the
merchant.
d) While
there is no minimum balance requirement, the maximum value in these PPIs shall
not exceed Rs. 20,000/- at any point of time.
e) Funds
transfer from such PPIs are permitted only to the merchant’s own linked bank
account and upto an amount of Rs.50,000/- per month,
without any limit per transaction.
f) PPI
issuers shall clearly identify such PPIs in their systems for the purpose of
maintenance of escrow, reporting and MIS requirements.
2. The above
measures shall come into effect from the date of this circular and shall be
applicable till December 30, 2016, subject to review.
3. The directive is issued under Section 10(2) read
with Section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).