CURRENT AFFAIRS

Detailed explanation-1: -It is mandatory for the PPI issuer to give the holders of full-KYC PPIs interoperability through authorised card networks and UPI. All modes of acceptance (including QR codes) and PPI issuance are required to be interoperable by March 31, 2022.

Detailed explanation-2: -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.

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: -Interoperability allows PPI Issuers, System Providers and System Participants in different systems to undertake, clear and settle payment transactions across systems without participating in multiple systems.