CURRENT AFFAIRS

Detailed explanation-1: -Slice, a card-fintech platform, has received an in-principle prepaid payment instrument (PPI) licence from the Reserve Bank of India, The Economic Times reported. This comes after the fintech firm came under pressure earlier this year after the banking regulator barred prepaid cards from being loaded with credit lines.

Detailed explanation-2: -2.3 Prepaid Payment Instruments: Prepaid payment instruments are payment instruments that facilitate purchase of goods and services against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holder, by cash, by debit to a bank account, or by credit card.

Detailed explanation-3: -Prepaid payment instruments’ examples include smart cards, online accounts, online wallets, stripe cards, paper vouchers, etc. The primary objective of these instruments is to get access to the amount already prepaid. So, one can purchase the required goods without any physical exchange of cash or card.

Detailed explanation-4: -Banks can issue PPIs after obtaining approval from RBI. The non-bank PPI issuers are companies incorporated in India and registered under the Companies Act, 1956 / 2013. They can operate a payment system for issuing PPIs to individuals / organisations after receiving authorisation from RBI. 4.

Detailed explanation-5: -PPIs are instruments that facilitate purchase of goods and services, conduct of financial services, enable remittance facilities, etc., against the value stored therein.