Master Directions on Prepaid Payment Instruments (PPIs)

Question 1

The PPIs which are used for purchases only from the issuing entity and cannot be used for cash withdrawal and third-party services. Also, It is not considered as payment system are known as ……………

Answer 1

Closed System PPIs

Question 2

Instruments that facilitate purchase of goods and services, financial services, remittance facilities, etc., against the value stored therein are known as ……………

Answer 2

Prepaid Payment Instruments

Question 3

How many types of PPI are there name them?

Answer 3

2 – Small PPI and Full KYC PPI

Question 4

Banks and Non-Banks after getting NOC from their respective regulatory department or Regulator has to apply to which department in RBI and within how many days?

Answer 4

DPSS, 30 Days

Question 5

Application for renewal of CoA (Certificate of Authorisation) by PPI issuers must be done at least ………….. months prior to the expiry of the current validity. If failed to do so, RBI might decline the request for renewal.

Answer 5

3 months

Question 6

Cooling period of ……….. years for those entities whose CoA is rejected, surrendered, not renewed.

Answer 6

One

Question 7

whether interest is paid on PPI balances?

Answer 7

No

Question 8

Cash Loading to PPI should be restricted to Rs ………… per month and subject to overall limit.

Answer 8

₹50,000/-

Question 9

What is the transaction limit for cross border transactions in INR for eligible PPIs issued by AD category-I banks?

Answer 9

Rs. 10,000 per transaction and Rs. 50,000 per month

Question 10

Amounts only upto ………………… from individual inward MTSS remittances shall be permitted to be loaded / reloaded in full-KYC PPIs issued to beneficiaries. Amount in excess of …………. shall be paid by credit to a bank account of the beneficiary.

Answer 10

Rs.50,000/-, Rs.50,000/-

Question 11

Limits for Small PPI?

Answer 11

Loading limit – 10,000 per month and 1,20,000 per year. However, At anytime the balance should not exceed Rs 10,000 and total amount debit in a month should not exceed Rs 10,000.

Question 12

Limits for Full KYC PPI?

Answer 12

Amount outstanding shall not exceed Rs 2,00,000 anytime. Funds transfer limit to pre-register beneficiaries shall be Rs. 2,00,000/- and in all other cases shall be limited to Rs 10,000 per month.

Question 13

Withdrawal limit through PoS for PPI issued by banks?

Answer 13

Rs. 2000 per transaction and Rs 10,000 per month. No mention of Limit if withdrawn through ATM and BCs

Question 14

Withdrawal limit through any medium for PPI issued by non-banks?

Answer 14

Rs. 2000 per transaction and Rs 10,000 per month.

Question 15

Features of Gift PPI?

Answer 15

Not reloadable and maximum value – Rs. 10,000/-

Question 16

Features of PPI MTS (Mass Transit System)?

Answer 16

Issued by MTS operators, reloadable in nature but maximum limit is Rs. 3000/- and Cash Out or Refund or funds transfer not allowed.

Question 17

Small PPI and PPI MTS exempted whereas Gift PPI has the option of …………………

Answer 17

Interoperability

Question 18

PPI Issuer should preferably resolve customer grievance within ………. but it should endeavour to resolve the same within ………..

Answer 18

48 hours, 30 days

Question 19

PPI will become inactive if no activity is done by the PPI holder for …………

Answer 19

One Year

Question 20

Non-bank PPI issuer cannot transfer the outstanding balance to its Profit & Loss account for at least ………… years from the expiry date of PPI. They should refund such amount in the bank account of the holder whenever the holder approaches.

Answer 20

Three