- Payment firms oppose RBI draft norms limiting P2P wallet transactions to Rs 25,000 monthly
- RBI proposes lower cash loading limit of Rs 10,000 and Rs 2 lakh overall monthly PPI balance
- PPIs include general, gift, transit, and NRI types, issued by banks or RBI-authorised non-banks
Payment companies have raised concerns over Reserve Bank of India's (RBI) draft Prepaid Payment Instruments (PPI) norms, people aware of the development told NDTV Profit.
Last month, the central bank issued draft PPI norms with the aim to develop a more conducive framework for the long-term growth of Prepaid Payment Instruments (PPIs), including enhanced transaction security and clearer rules on refunds and grievance redressal.
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Payment companies have opposed the directive that seek to limit peer-to-peer (P2P) wallet transactions at Rs 25,000 per month and reduce cash loading limits to Rs 10,000. They also flagged overall monthly balance limit of Rs 2 lakh is already unviable, and any more limit on P2P transactions may lead to customer exodus.
Companies assert that PPIs are already heavily regulated, transaction trail remains even in doubtful transfers, people said.
PPI is a payment instrument where money is loaded and which facilitates subsequent transactions to utilise the fund. These instruments are categorised as general purpose PPI, gift PPI, transit PPI, PPI for NRIs, besides certain other specific purpose PPI. A bank permitted by RBI to issue debit cards can issue PPIs, with prior intimation to the Department of Payment and Settlement Systems (DPSS), Central Office, RBI, Mumbai, the draft said.
A non-bank entity too can issue PPIs after authorisation from the RBI. "A non-bank applicant shall have a minimum net-worth of Rs 5 crore, and shall submit a certificate...from its statutory auditor," the draft said.
Payment companies are seeking parity with banks on P2P transactions, warning that the proposed measures could lead to significant customer attrition. Some pure-play wallet companies have cautioned that the stricter norms may force them to shut operations if implemented.
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