CURRENT AFFAIRS

Detailed explanation-1: -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-2: -PPIs that require RBI approval / authorisation prior to issuance are classified under two types: Small PPIs (or minimum-detail PPIs): These PPIs are issued by banks and non-banks after obtaining minimum details of the PPI holder.

Detailed explanation-3: -PPIs that require RBI approval / authorisation prior to issuance are classified under two types viz. (i) Small PPIs, and (ii) Full-KYC PPIs. Small PPIs : Issued by banks and non-banks after obtaining minimum details of the PPI holder. They shall be used only for purchase of goods and services.

Detailed explanation-4: -Ans. These PPIs are issued by an entity for facilitating the purchase of goods and services from that entity only. Cash withdrawals are not permitted. These instruments cannot be used for payment or settlement for third party services.

Detailed explanation-5: -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.