CURRENT AFFAIRS

Detailed explanation-1: -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/-;

Detailed explanation-2: -A Small PPI (with cash loading facility) can be held for a maximum period of 24 months only. The 24 months shall be counted from the day of opening such a PPI. Within this period of 24 months, it has to be converted into a full-KYC PPI failing which, no further credit in such PPI shall be allowed.

Detailed explanation-3: -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-4: -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-5: -Payment banks can take deposits up to Rs. 2, 00, 000. It can accept demand deposits in the form of savings and current accounts. The money received as deposits can be invested in secure government securities only in the form of Statutory Liquidity Ratio (SLR).