RBI to bring in PPIs under its ambit

In a move to bring prepaid products instruments (PPIs) under its net, the RBI has drafted the guidelines, including certain mobile cards, food vouchers and pre-loaded petro cards, within its regulatory purview and has stipulated a maximum value should not exceed Rs 50,000 and their validity should not be more than six months.

The central bank has also said that the use of mobile prepaid value for purchase of other goods and services will not be permitted, the draft said, adding that encashment will not be permitted.

In order to safeguard the interest of the users of PPIs, the RBI has said every month an issuer can deduct only 10% of the remaining value on the instrument after its expiry.