CURRENT AFFAIRS

Detailed explanation-1: -Their salient features are as follows: PPIs upto ₹10, 000/-(with 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/-;

Detailed explanation-2: -The Reserve Bank of India (RBI) issued directions on Jun 20, 2022, for all non-bank Prepaid Payment Instrument (PPI) issuers to stop loading their PPIs through credit lines. This was aimed at the availability of several PPI credit-linked products offered in partnership with the banks and NBFCs.

Detailed explanation-3: -The RBI has explicitly declared that all PPIs should be loaded only via banking instruments e.g., account transfers, debit cards, credit cards. As such, the RBI has now clearly barred the loading of PPIs through credit lines issued by non-banking entities.

Detailed explanation-4: -“These PPIs shall be used for the purchase of goods and services, funds transfer or cash withdrawal, ” it further said, adding that the amount outstanding shall not exceed ₹2 lakh at any point of time. The RBI has also said that PPI issuer shall have a board-approved policy for PPI interoperability.

Detailed explanation-5: -RBI guidelines mandate PPI Issuers to facilitate interoperability for full-KYC wallets by March 31, 2022. “With interoperability, customers of LivQuik will be able to optimise their payments and spending across wallets by attaching a card on Visa and RuPay networks and can also enable UPI, ” the company said.