Introduction of Prepaid Payment Instruments for Mas Transit System

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....ntroduction of Prepaid Payment Instruments for Mas Transit System <br>News and Press Release<br>Dated:- 24-7-2015<br><BR>Reserve Bank of India (RBI) vide its circular dated 9th July, 2015 introduced a new category of semi-closed Prepaid Payment Instrument (PPI) with the following features: * The semi-closed PPIs will be issued by the mass transit system operator (PPI-MTS) after authorization und....

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....er the Payment and Settlement Systems Act, 2007 to issue and operate such semi-closed PPIs; * The PPI-MTS will necessarily contain the Automated Fare Collection application related to the transit service to qualify as PPI-MTS; * Apart from the mass transit system, such PPI-MTS can be used only at other merchants whose activities are allied to or are carried on within the premises of the transi....

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....t system; * The PPI-MTS issuer will ensure on-boarding of merchants (only those permissible as under (iii) above) following due procedure applicable to any other PPI issuer; * The PPI-MTS will have minimum validity of six months from the date of issue; * The issuer may decide upon the desired level of KYC, if any, for such PPIs; * The PPI-MTS issued may be reloadable in nature and at no po....

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....int of time the value/balance n PPI can exceed the limit of &#8377; 2000/-; * No cash-out or refund will be permitted from these PPIs; * Funds transfer under the Domestic Money Transfer (DMT) guidelines will also not be applicable to these PPIs; * All other extant guidelines for escrow arrangement, customer grievance redressal mechanism, agent/merchant due diligence, reporting and MIS requir....

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....ements etc applicable to issue of PPIs would continue to be applicable in respect of PPI-MTS. This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.<BR> News - Press release - PIB....