The prepaid payment wallets also commonly known as PPIs are the instruments that have monetary value contained in them against which the goods and services are made purchasable and funds are made transferable.
The monetary value that is stored in the prepaid payment wallets is the amount that the holder has paid towards it either by way of cash or debit to a bank account or credit card. The prepaid payment wallets have become very popular in the last few years as they are very easy to use alternate ways for transactions. The transactions carried out by them are transparent, accountable, convenient and easy to use. The prepaid payment wallets are also referred to as e-wallets.
For the processing and the allowance for the transactions between the different prepaid payment instruments, the Reserve Bank of India has issued certain guidelines.
The prepaid instruments may be issued in the following forms:
The below mentioned are the different types of prepaid payment instruments.
These are the kind of PPIs that are issued by a company to its consumers particularly for the objective of buying goods of that company only. This type of PPI can be used for the purchase of goods and services of only that particular company which has issued it. For example - Reliance Supermarkets, etc.
In this category of the prepaid payment instruments in which the holder
They are the prepaid payment instruments that are used to acquire goods and services at anyplace and the holders also have the authorization of withdrawing cash from ATMs.
Cross Border Transactions –
According to the guidelines issued by the RBI regarding the prepaid payment wallets are not applicable to individuals who are sanctioned to issue the Foreign Exchange denominated prepaid payment instruments, according to the provisions of Foreign Exchange and Management Act. The transaction perimeter for cross border transactions is fixed at INR 5,000.
While scheming the net worth of a company, the following mentioned shall be a part of the net worth:
The documents required for getting the license for issuing PPI are as follows:
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