Thread by @FinMedium

Big news came in that #BajajFinance has been granted authorisation to issue pre-paid instruments.

What are pre-paid istruments and what it means for @Bajaj_Finance ? Let's learn in the thread below. 🧵

What are PPIs?

RBI as per under the Payment and Settlement Act, 2005 defined Prepaid Payment Instruments as instruments of payment that facilitate buying of goods and services, including the transfer of funds against the value stored within or on the instrument.

The value stored in the instrument is represented by the value that has already been paid for by the holder or the instrument by any method such as, by cash, by debit from a bank account, credit card or even from other PPIs.

Types of Semi-Closed PPIs

1. Minimum detail PPI: Only bare minimum details of such, as only the name and the number on the holder and no other details such as pan number, aadhar number have not been obtained by the issuer. In such a case, the maximum amount is up to Rs 10,000.

2. Loading only from a bank account: In the case where the PPI can only be loaded via the bank account and not through any other means such as cash etc. the maximum amount of money that can be loaded onto the PPI is Rs 10,000.

3. Full KYC PPI: where the full KYC of the PPI holder has been obtained and registered by the PPI issuer the maximum limit of money that can be loaded onto the instrument increases to Rs 1 lakh.

Id. cleartax.in

This basically means that Bajaj Finance can open payment wallets which is a big step given their massive user base.

@bankonbasak @Arunstockguru