What are PPIs?
Ans. PPIs are instruments that facilitate purchase of goods and services, conduct of financial services, enable remittance facilities, etc., against the value stored therein.
Who is a holder of a PPI?
Ans. A holder of a PPI is an individual who obtains / purchases the PPI from the PPI issuer. However, in case of a gift PPI, any other intended / targeted beneficiary, though not being the purchaser, can also be a holder.
What are the various types of PPIs?
Ans. PPIs that require RBI approval / authorisation prior to issuance are classified under two types:
- Small PPIs (or minimum-detail PPIs): These PPIs are issued by banks and non-banks after obtaining minimum details of the PPI holder. These PPIs can be used for purchase of goods and services at a group of clearly identified merchant locations / establishments which have a specific contract with the issuer (or contract through a payment aggregator / payment gateway) to accept the PPIs as payment instruments. Funds transfer or cash withdrawal from such PPIs is not permitted.
- Full-KYC PPIs: The PPIs are issued by banks and non-banks after completing Know Your Customer (KYC) of PPI holder. These PPIs can be used for purchase of goods and services, funds transfer or cash withdrawal.
How can PPIs be loaded?
Ans. PPIs can be loaded / reloaded by debit to a bank account, credit and debit cards, PPIs (as permitted from time to time) and other payment instruments issued by entities regulated in India and in Indian Rupees (INR) only.
What are included in details to be obtained in Small PPI?
Ans. The minimum details for Small PPIs are same and are as under:
- mobile number verified with One Time Password (OTP); and
- self-declaration of name and unique identity / identification number of any mandatory document or Officially Valid Document (OVD) or any such document with any name listed for this purpose in the RBI’s Master Direction on KYC. The present list of mandatory document / OVDs include passport, driving licence, voter's identity card, NREGA job card, proof of possession of Aadhaar number and letter issued by the National Population Register.
What are the salient features of Small PPI?
Ans. PPIs upto ₹10,000/- (with no cash loading facility):
- The amount loaded during any month shall not exceed ₹10,000/-;
- The total amount loaded during the financial year shall not exceed ₹1,20,000/-;
- The amount outstanding at any point of time shall not exceed ₹10,000/-;
- Loading / Reloading shall be from a bank account / credit card / full-KYC PPI; and
- The Small PPIs (with cash loading facility) existing as on December 24, 2019 can be converted to this PPI, if desired by the PPI holder.
Is cash withdrawal or funds transfer permitted from the two types of Small PPIs?
Ans. Cash withdrawal or funds transfer from these two types of Small PPIs is not permitted.
What happens to outstanding balance if the Small PPIs (both types) are not required anymore and has to be closed?
Ans. PPI holder has the option to close the PPI at any time and transfer the funds ‘back to source’ (payment source from where the PPI was loaded) at the time of closure. Alternatively, the closure proceeds can be transferred to a bank account after complying with KYC requirements of PPI holder.
What are the salient features of a ‘Full-KYC’ PPI?
Ans. The salient features of ‘Full-KYC’ PPIs are as follows:
- Reloadable in nature;
- The amount outstanding shall not exceed ₹2,00,000/- at any point of time;
- There are no limits prescribed for total credits or debits during a month; and
- They can be used for purchase of goods and services, cash withdrawal and funds transfer.
Is funds transfer allowed from a ‘Full-KYC’ PPI?
Ans. Yes, funds transfer is allowed from a ‘Full-KYC’ PPI within a limit of ₹10,000/- per month per holder. However, an enhanced limit of up to ₹2,00,000/- per month per beneficiary can be availed if the beneficiary is ‘pre-registered’ by PPI holder. However a lower limit can be set after taking into account the risk profile of the PPI holder, other operational risks, etc.
What are the cash withdrawal limits in PPIs?
Ans. In case of non-bank issued PPIs, cash withdrawal is permitted upto a limit of ₹2,000/- per transaction within an overall monthly limit of ₹10,000/- per PPI across all channels (agents, ATMs, PoS devices, etc.).
What is the minimum validity period of a PPI?
Ans. All PPIs shall have a minimum validity period of one year.
What will happen to a PPI that is not used for a certain period?
Ans. A PPI with no financial transaction for a consecutive period of one year shall be made / treated inactive after sending a notice to the PPI holder. It can be reactivated only after validation and applicable due diligence.
What will happen to the outstanding balance in such PPIs where the scheme is being wound-up or is directed by RBI to be discontinued?
Ans. The holders of such PPIs shall be permitted to redeem the outstanding balance in the PPI, if for any reason the scheme is being wound-up or is directed by RBI to be discontinued.
Where can the customer report an unauthorised transaction in his / her PPI account?
Ans. Customers can report via selfcare portal / support@livquik.com e-mail / 18003092225 toll-free helpline for reporting unauthorised transactions and / or loss or theft of the PPI.
