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The RBI has issued a circular to address the special circumstances that have emerged after the demonetisation drive to curb the menace of black money.
Any service to which you can add in money that can be used for financial transactions later, on is called a Prepaid Payment Instrument (PPI) by the RBI. For regular users, the PPI limit has been doubled to Rs 20,000. The limit so far was Rs 10,000.
This means that mobile wallets, digital wallets and smart cards can be loaded with more cash now. The limit for any given month cannot exceed Rs 20,000, and all other regulations remain unchanged.
There is a special provision for small merchants also. The PPI providers have to first register the small merchants and verify their bank accounts. After this, the transfer limit to banks from PPI has been increased to Rs 50,000 per month, with no limit on the amount that can be transferred in a single transaction.
However, the amount of money loaded into a PPI can only be Rs 20,000, even for merchants. This means that essentially, the maximum possible transaction to a bank account from a merchant held PPI is Rs 20,000. The inflow of funds to the merchant account can be over sale transactions only.
The measures are meant to ease the transition into a cashless economy, as well as reduce the problems faced by people following the demonetisation.
The instructions of the circular come into immediate effect. The relaxed limits will last till 30 December 2016, at which point the instructions will be reviewed.
Demonetisation: RBI takes special steps, increases mobile wallet limit to Rs 20,000 per month Tech2 Mobile
Any service to which you can add in money that can be used for financial transactions later, on is called a Prepaid Payment Instrument (PPI) by the RBI. For regular users, the PPI limit has been doubled to Rs 20,000. The limit so far was Rs 10,000.
This means that mobile wallets, digital wallets and smart cards can be loaded with more cash now. The limit for any given month cannot exceed Rs 20,000, and all other regulations remain unchanged.
There is a special provision for small merchants also. The PPI providers have to first register the small merchants and verify their bank accounts. After this, the transfer limit to banks from PPI has been increased to Rs 50,000 per month, with no limit on the amount that can be transferred in a single transaction.
However, the amount of money loaded into a PPI can only be Rs 20,000, even for merchants. This means that essentially, the maximum possible transaction to a bank account from a merchant held PPI is Rs 20,000. The inflow of funds to the merchant account can be over sale transactions only.
The measures are meant to ease the transition into a cashless economy, as well as reduce the problems faced by people following the demonetisation.
The instructions of the circular come into immediate effect. The relaxed limits will last till 30 December 2016, at which point the instructions will be reviewed.
Demonetisation: RBI takes special steps, increases mobile wallet limit to Rs 20,000 per month Tech2 Mobile
