For promoting digital payments, RBI(Reserve Bank of India) has come up with another payment method namely, PPI i.e. Prepaid Payment Instrument. With the introduction of prepaid payment instrument, RBI has the aim of providing the users an enhanced experience of digital payments.
What is PPI?
PPI or Prepaid Payment Instrument is a new method of digital payments in which a user can upload a maximum of Rs. 10,000 in a month and can use it for purchasing goods and various other services.
In other words, it can be described as the finanicial instruments that provides you the feature of purchasing goods and other required services that has the value less than or equal to the amount stored on the instruments.
As per RBI, these Prepaid Payment Instruments(PPIs) will be issued to the users by the banks. People can also apply for PPI’s from the non-banking partners after providing all the necessary details and documents.
How much is the transaction limit?
A user can upload a maximum of Rs. 10,000 only on the prepaid payment instrument per month and hence the total amount per year should not exceed Rs. 1,20,000. Additionally, if a user wants to suspend the services of card, there will be an option to deactivate the PPIs as per the request. The amount left on the card at the time of deactivation will be credited back to the original source from where it has been uploaded.