Mumbai: Reserve Bank of India (RBI) on Friday extended the period of enhanced Prepaid Payment Instruments (PPI) limit of Rs20,000 as part of efforts to promote digital payments.
Considering that the bank is undertaking a comprehensive review of the guidelines and framework for Prepaid Payment Instruments (PPI) issuance in the country, it has been decided to extend the measures till the completion of review of the PPI guidelines, RBI said in a notification.
The decision comes on the day when the enhanced limit from Rs10,000 to Rs20,000 came to an end. At present, 47 non-bank entities and 45 banks are operating payment systems for PPI. 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 Rs20,000 at any point of time, the merchants can transfer funds from such PPIs to their own linked bank accounts up to Rs50,000 per month, without any limit per transaction.