CURRENT AFFAIRS

Detailed explanation-1: -The move is part of Bajaj Finance’s broader strategy to expand its digital offerings. RBI has granted authorization to the Company for issuance and operation of semi-closed Prepaid Payment Instruments with perpetual validity.

Detailed explanation-2: -One of the examples of semi-closed PPI is the Paytm wallet.

Detailed explanation-3: -Ans. PPIs can be issued by banks and non-banks. 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.

Detailed explanation-4: -LivQuik becomes the first fintech to achieve RBI’s PPI interoperability guidelines. LivQuik, a prepaid payment instrument issuer, announced on Friday that it has achieved full interoperability for its Prepaid Payment Instruments, as mandated by the RBI.

Detailed explanation-5: -2.5 Semi-Closed System Payment Instruments: These are payment instruments which are redeemable at a group of clearly identified merchant locations/ establishments which contract specifically with the issuer to accept the payment instrument. These instruments do not permit cash withdrawal or redemption by the holder.