Tuesday, October 6, 2015

PPI for Mass Transit Systems (PPI-MTS)

A new category of semi-closed Prepaid Payment Instruments (PPI) is being introduced with the following features:
  1. The semi-closed PPIs will be issued by the mass transit system operator (PPI-MTS) after authorisation;
  2. The PPI-MTS will necessarily contain the Automated Fare Collection application related to the transit service to qualify as PPI-MTS;
  3. Apart from the mass transit system, such PPI-MTS can be used only at other merchants whose activities are allied to or are carried on within the premises of the transit system ;
  4. The PPI-MTS issuer will ensure on-boarding of merchants following due procedure;
  5. The PPI-MTS will have minimum validity of six months from the date of issue;
  6. The issuer may decide upon the desired level of KYC;
  7. The PPI-MTS may be reloadable and at no point of time can the balance exceed the limit of Rs. 2,000/-;
  8. No cash-out or refund will be permitted from these PPIs;
  9. Funds transfer guidelines under the Domestic Money Transfer will not be applicable to these PPIs;
  10. All other guidelines applicable to issue of PPIs would continue to be applicable in respect of PPI-MTS.

Based on RBI Circular dt 9/07/15. Please visit www.rbi.org.in for any further clarification if required…..          Poppy