9. Types of PPIs
9.1 Semi-closed PPIs by bank and non-bank PPI Issuers
Semi-closed PPIs issued by banks and non-banks would have same features, unless otherwise specified.
(i) PPIs upto Rs.10,000/- by accepting minimum details of the PPI holder
a) Bank and non-bank Issuers shall be permitted to issue these PPIs after obtaining minimum details of the PPI holder.
b) The minimum details shall include mobile number verified with One Time Pin (OTP) and self-declaration of name and unique identification number of any of the ‘officially valid document’ defined under Rule 2(d) of the PML Rules 2005, as amended from time to time.
c) These PPIs shall be reloadable in nature and issued only in electronic form, including cards.
d) The amount loaded in such PPIs during any month shall not exceed Rs.10,000/- and the total amount loaded during the financial year shall not exceed Rs.1,00,000/-.
e) The amount outstanding at any point of time in such PPIs shall not exceed Rs.10,000/-
f) The total amount debited from such PPIs during any given month shall not exceed Rs. 10,000/-.
g) These PPIs shall be used only for purchase of goods and services. Funds transfer from such PPIs to bank accounts and also to PPIs of same / other issuers shall not be permitted.
h) There is no separate limit on purchase of goods and services using PPIs and PPI issuer may decide limit for these purposes within the overall PPI limit.
i) These PPIs shall be converted into KYC compliant semi-closed PPIs (as defined in paragraph 9.1(ii)) within a period of 12 months from the date of issue of PPI, failing which no further credit shall be allowed in such PPIs. However, the PPI holder shall be allowed to use the balance available in the PPI.
j) PPI issuers shall ensure that this category of PPI is not issued to the same user in future using the same mobile number and same minimum details.
k) PPI issuers shall give an option to close the PPI at any time and outstanding balance, at the time of closure, shall be transferred at the request of the holder to the ‘own bank account of the PPI holder’ (duly verified by the Issuer), after complying with KYC requirements of the PPI holder. PPI issuers shall also allow to transfer the funds ‘back to source’ (payment source from where the PPI was loaded) at the time of closure.
l) The features of such PPIs shall be clearly communicated to the PPI holder by SMS / e-mail / post or by any other means at the time of issuance of the PPI / before the first loading of funds.
(ii) PPIs upto Rs.1,00,000/- after completing KYC of the PPI holder
a) Bank and non-bank Issuers shall be permitted to issue these PPIs after completing KYC of the PPI holder (as indicated in paragraph 6).
b) These PPIs shall be reloadable in nature and issued only in electronic form, including cards.
c) The amount outstanding shall not exceed Rs.1,00,000/- at any point of time.
d) The funds can be transferred ‘back to source’ (payment source from where the PPI was loaded) or ‘own bank account of the PPI holder’ (duly verified by the Issuer). However, PPI issuers shall set the limits taking into account the risk profile of the PPI holders, other operational risks, etc.
e) PPI issuers shall provide the facility of ‘pre-registered beneficiaries’ whereby the PPI holder can register the beneficiaries by providing their bank account details, details of PPIs issued by same issuer (or different issuers as and when permitted), etc.
f) In case of such pre-registered beneficiaries, the funds transfer limit shall not exceed Rs.1,00,000/- per month per beneficiary. PPI issuers shall set the limits within this ceiling taking into account the risk profile of the PPI holders, other operational risks, etc.
g) The funds transfer limits for all other cases shall be restricted to Rs.10,000/- per month.
h) There is no separate limit on purchase of goods and services using PPIs and PPI issuer may decide limit for these purposes within the overall PPI limit.
i) PPI issuers shall clearly indicate these limits to the PPI holders and also provide necessary options to PPI holders to set their own fund transfer limits.
j) PPI issuers shall also give an option to close the PPI and transfer the balance as per the applicable limits of this type of PPI. For this purpose, the Issuers shall provide an option, including at the time of issuing the PPI, to the holder to provide details of pre- designated bank account or other PPIs of same issuer (or other issuers as and when permitted) to which the balance amount available in the PPI shall be transferred in the event of closure of PPI, expiry of validity period of such PPIs, etc.
k) The features of such PPIs shall be clearly communicated to the PPI holder by SMS / e-mail / post or by any other means at the time of issuance of the PPI / before the first loading of funds.
9.2 Open system PPIs after completing KYC of the PPI holder
a) Only banks shall be permitted to issue open system PPIs after completing KYC of the PPI holder (as indicated in paragraph 6).
b) These PPIs shall be reloadable in nature and issued only in electronic form, including cards.
c) The amount outstanding shall not exceed Rs.1,00,000/- at any point of time.
d) The funds can be transferred ‘back to source’ (payment source from where the PPI was loaded) or ‘own bank account of the PPI holder’ (duly verified by the Issuer). However, PPI issuers shall set the limits taking into account the risk profile of the PPI holders, other operational risks, etc.
e) PPI issuers shall provide the facility of ‘pre-registered beneficiaries’ whereby the PPI holder can register the beneficiaries by providing their bank account details, details of PPIs issued by same issuer (or different issuers as and when permitted), etc.
f) In case of such pre-registered beneficiaries, the funds transfer limit shall not exceed Rs.1,00,000/- per month per beneficiary. PPI issuers shall set the limits within this ceiling taking into account the risk profile of the PPI holders, other operational risks, etc.
g) The funds transfer limits for all other cases shall be restricted to Rs.10,000/- per month.
h) Funds transfer from such PPIs shall also be permitted to other open system PPIs, debit cards and credit cards as per the limits given above.
i) There is no separate limit on purchase of goods and services using PPIs and PPI issuer may decide limit for these purposes within the overall PPI limit.
j) PPI issuers shall clearly indicate these limits to the PPI holders and also provide necessary options to PPI holders to set their own fund transfer limits.
k) PPI issuers shall also give an option to close the PPI and transfer the balance as per the applicable limits of this type of PPI. For this purpose, the Issuers shall provide an option, including at the time of issuing the PPI, to the holder to provide details of pre-designated bank account or other PPIs of same issuer (or other issuers as and when permitted) to which the balance amount available in the PPI shall be transferred in the event of closure of PPI, expiry of validity period of such PPIs, etc.
l) The features of such PPIs shall be clearly communicated to the PPI holder by SMS / e- mail / post or by any other means at the time of issuance of the PPI / before the first loading of funds.
10. Specific categories of PPIs
From the date of issuance of this Master Direction, PPI issuers shall cease to issue PPIs of any other category as permitted earlier except the following two categories:
10.1 Gift instruments
Banks and non-bank entities are permitted to issue prepaid gift instruments subject to the following conditions:
a) Maximum value of each prepaid gift instrument shall not exceed Rs.10,000/-.
b) These instruments shall not be reloadable.
c) Cash-out or refund or funds transfer shall not be permitted for such instruments.
d) KYC details of the purchasers of such instruments shall be maintained by the PPI Issuer. Separate KYC would not be required for customers who are issued such instruments against debit to their bank accounts in India.
e) Entities shall adopt a risk based approach, duly approved by their Board, in deciding the number of such instruments which can be issued to a customer, transaction limits, etc.
f) The gift instruments may be revalidated (including through issuance of new instrument) as per the Board approved policy of the issuer.
g) The provisions of paragraph 13 on validity and redemption, as applicable, shall be adhered to.
h) The features of such PPIs shall be clearly communicated to the PPI holder by SMS / e-mail / post or by any other means at the time of issuance of the PPI / before the first loading of funds.
10.2 PPIs for Mass Transit Systems (PPI-MTS)
a) These semi-closed PPIs shall be issued by mass transit system operators after authorisation to issue and operate such PPIs under the PSS Act.
b) The PPI-MTS shall necessarily contain the Automated Fare Collection application related to the transit service to qualify as PPI-MTS.
c) Apart from the mass transit system, such PPI-MTS shall be used only at other merchants whose activities are allied / related to or are carried on within the premises of the transit system.
d) The issuer may decide about the customer details, if any, required to be obtained for issuance of such PPIs.
e) The PPI-MTS issued shall be reloadable in nature and the maximum value outstanding in PPI cannot exceed the limit of Rs. 3,000/- at any point of time.
f) Cash-out or refund or funds transfer shall not be permitted from these PPIs.
g) Other requirements such as escrow arrangement, customer grievance redressal mechanism, agent due diligence, reporting and MIS requirements, etc. applicable to issuance of PPIs (as indicated under various paragraphs of this Master Direction) shall also be applicable in respect of PPI-MTS.
h) These PPIs may be revalidated (including through issuance of new instrument) as per the Board approved policy of the issuer.
i) The provisions of paragraph 13 on validity and redemption, as applicable, shall be adhered to.
j) The features of such PPIs shall be clearly communicated to the PPI holder by SMS / e-mail / post or by any other means at the time of issuance of the PPI / before the first loading of funds.