Welcome to Banking Quest

Agenda

• Digital Banking Products & Services
• Internet Banking
• Mobile Banking 
• e-Wallets 
• Kiosks 
• E-Lobbies
• 2-FA / MFA 
• Safer use of ADCs
• Customer Protection Measures

 What are Digital Banking Products

Digital Payment Services

• Remittances
• ECS (Credit & Debit)
• RTGS
• NEFT
• IMPS
• UPI
• IMT
• NETC – (FASTag)
• SWIFT

Digital Channels / Products

• Internet Banking
• Mobile Banking
• Tab Banking
• E-Wallets
• BHIM & Similar Products
• Pre-Paid Instruments (PPI)
• Cards – (Credit/Debit/Charged)
• BNA / CDK / PBP Kiosks
• Internet Kiosks
• BBPS / Bill Payments

 Products under discussion

• RuPay Card
• Mobile Banking
• IMPS
• USSD
• UPI, BHIM
• Mobile Wallets
• Internet banking
• RTGS, NEFT
• ATMs, PoS
• APBS, AEPS
• BBPS
• NETC
• eRupi

 Need of Digital Banking

Digital Banking

• also known as Electronic Banking, Virtual Banking,
  Alternate Delivery Channels (ADC)
• Important mode for availing the banking at Door step
• Banking services away from Branch banking
• 3 basic needs - Cash withdrawal, Cash Deposit, Transfer of Money
• Started with ATMs – 24 X 7 and cheaper mode
• Quicker remittances
• Cashless transactions like RTGS, NEFT, ECS, NACH, DBT
• Expanding E-Comm services, Digital Contactless Payments, CoD, PoD

 PRINCIPLE OF CONVENIENCE DRIVING ANY PAYMENT INSTRUMENT OR CHANNEL

ATM

• These are know as ‘Automated Teller Machines’ or ‘Any Time Money’
• ATM Cards, Debit-cum-ATM Cards and also some Credit Cards are allowed
• Provide Cash and select financial & non-financial transactions
• Customers need to ensure safe keeping of cards and confidentiality of PIN
• ATMs have different forms – Cash Dispensers, accept Cash Deposits, known as Recycler ATMs and multi-function ATMs
• Optimisation of ATM Proliferation is necessity – enabling minimum free transactions based on location has helped in this regard
• Banks also fix the Daily Cash withdrawal limits for own Bank Cards & other Bank Cards – Operational requirements & Risk mitigation
• Monitoring of Availability of Cash in ATMs – Penalty on Banks

 ATMs are classified on various parameters

• On-site and Off-site ATMs
• Brown Label and White Label ATMs
• Orange Label, Yellow Label, Green Label, Pink Label ATMs
• Bank owned & Leased ATMs
• Cash Dispensers and full function ATMs
• Mobile ATMs
• Micro ATMs
• Now almost all the ATMs are connected through NFS, enabling any Bank ATM Card payments on all such ATMs
• On-Us and Off-Us transactions
• Free & Charged Txns – Own ATM & other Bank ATM, Metro/Non-Metro

 UPI-ATM

• ICCW - Interoperable Cardless Cash Withdrawal 
• ICCW service facilitates participating bank’s customers, live on UPI, to withdraw cash from any participating banks’ ATMs (enabled for UPI-ATM) without using their card.
• Once the customer selects the option ‘UPI cash withdrawal’ at the ATM, customer shall be prompted to enter the withdrawal amount. After entering the amount, a single use dynamic QR code (signed) shall be displayed on the ATM screen. Customer needs to scan the QR code using any UPI APP and authorize the transaction with UPI PIN on the mobile (UPI APP) to get cash from the ATM.

 Other Types of ATMs

Various Card Products

• ATM Card
• Debit Card – Own money
• Credit Card – Credit from Bank, Cash Advance, higher chgs & interests
• Pre-paid Cards (PPI), Charged Cards, Gift Cards, Stored Value Card
• Role of Card Networks – Master, Visa, RuPay
• RuPay – Lower transaction fee, Aadhaar linkage, Global tie-ups
• Mag Strip vs Chip based Cards 
• Card Not Present Txns (CNP) – Online Shopping, E-Comm
• OTP, Txn Alerts, Frauds, Safety of Cards, PIN, CVV, Lost Card, Hot listing, Card Control Apps
• Card Less, QR based Txns, IMT

 RuPay Debit Card

• RuPay Debit Card: an indigenous domestic debit card 
• Introduced by National Payment Corporation of India (NPCI) – 26-Mar-2012. 
• Card is accepted at all NFS ATMs including Micro ATMs (for cash withdrawal) and most of the PoS machines within the country and globally. 
• Personal Identification Number (PIN) is randomly generated code for use of ATM Card at the time of withdrawal of money from ATM Machine and also at the time of making payment on PoS. 
• It provides Accidental Insurance Cover upto Rs.1.00 lac without any charge to the customer. 
• To get benefit of Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days
• It can be issued to Illiterate persons subject to certain conditions. 

 NFS – National Financial Switch

• NFS set up by IDRBT - August 27, 2004
• Operations taken over by NPCI – 14 Dec 2009
• Presently NFS ATMs over 2.65 lacs
• As on Feb’ 2023, there were 1,247 members including
  • 113 Direct, 1087 Sub members, 
  • 43 RRBs and 
  • 4 WLAOs 

Value Added Services

• Interoperable Cash Deposit (ICD)
• Mobile Banking Registration (MBR)
• Card-to-Card Fund Transfer (C2C)
• Cheque Book Request (CBR)
• Statement Request (SR)
• Aadhaar Number Seeding (ANS)
• NFS – Important Circulars | NPCI

SFMS – Structured Financial Messaging System

• Secure Common Messaging System to serve as basic platform for Domestic intra-bank and inter-bank applications
• Fulfil the requirements of domestic financial messaging, gave birth to the Structured Financial Messaging System (SFMS)
• The SFMS was launched on December 14, 2001, at the Institute for Development and Research in Banking Technology (IDRBT)
• The SFMS is based on ISO-20022
• It was built on the lines of SWIFT but has many more utilities to offer
• The inter-bank messaging part is useful for applications like Electronic Funds Transfer (EFT), Real Time Gross Settlement System (RTGS), Delivery Versus Payments (DVP), Centralized Funds Management System (CFMS) etc.
• SFMS works on INFINET net work platform
• Opening of inland LC & BG mandatory through SFMS

 Structure of IFS Code 

• IFS Code consists of 11 alpha-numeric characters-
  • first 4 characters – entity
  • fifth position -  ‘0’   
  • last 6 characters – branch number

E.g. 

• UBIN0549584 (Union Bank)
• BKID0000123 (Bank of India)
• SBIN0020852 (SBI)
• UTIB0000248 (Axis Bank)
• UTIB0SBMCB1 (Bombay Mercantile Bank) etc.

 RTGS VS NEFT

Internet Banking

• The most important change after the CBS has been the launching of Internet Banking facility by the Banks
• Internet Banking provides Branch Banking as Anywhere Anytime Banking
• Necessary technology setup at the Bank end is put in for enabling Secured Internet Banking including Web Server, App Servers etc.
• Necessary security setups, Security Policies are put in place before launching the facility to enable the security of transactions and safety of A/cs
• Customers can use the IB services on a PC, Laptop, Mobile or Tablet which are connected to Internet
• End-User / Customer Device Protection and Secured communication is the main essence of Security
• Customer registration - online or through home branch for facility
• IB credentials - UserID & View & Transaction Passwords
• Retail & Corporate IB – Maker-Checker, Limits, Workflow
• 2-FA for IB through tokens, Mobile OTP
• Customer can do many things in Internet Banking, including:
  • View Accounts Details, Balances, Statement, D-Mat, Card A/c details etc.
  • Funds transfer amongst own A/cs & third party A/cs
  • Within same Bank or to other Banks through RTGS, NEFT, IMPS etc.
  • Requests for Chq. Book, Online FD or Share Investments
  • Standing Instructions for Funds transfer, Bill Payments etc. 
  • Online Tax Payments, ITR Filing
  • Online Bill Payments, Fees, Donations, Subscriptions etc.
  • E-Comm payments for purchase of goods or services

 Internet Banking Security Essentials

• End-point Integrity
• Mutual Authentication
• Secure Communications
• End-to-end Encryption
• Dedicated Channel

 Two Factor Authentication

• Two-factor authentication (TFA, T-FA or 2FA) is an approach to authentication which requires the presentation of "two or more" of the three authentication "factors" – 
  • something the user knows, 
  • something the user has, and 
  • something the user is
• When a Bank customer uses ATM, one authentication factor is the physical ATM card used by the customer -
  "something the user has"
  The second factor is the PIN they enter -
  "something the user knows"
• In Internet Banking “UserID” + “Password” are taken as one factor which “User knows”. Second Factor - The Machine or PC used, is something, “User has”

 Securing Internet Banking

Customer Education

• Use Internet Banking from known & secured PC
• Avoid online banking on unsecured Wi-Fi systems
• Password Security – Construct, Ageing, Re-use disabling
• If you have several bank accounts, never use the same online banking password for all
• Never reply to queries from Bank, ONLINE (on web or by email) about account or personal details
• The personal information should not be kept in a public computer or in emails

Internet Banking Safety Tips

• Check Banking & Gateway sites’ URL carefully
• Notice https://  in the address bar and “padlock” on the browser
• Notice and check Digital Certificate Authority symbol and validity of Certificate (Verisign, Entrust, IDBRT etc.)
• Never select the option on browser that stores or retains user name and password
• Always check 'last logged‘ details; report to Bank, if suspicious 
• Always log out & close the browser when you exit
• Keep system up to date for Security patches
• Install Anti-virus & a personal firewall
• Public access can be injurious - Don't leave the PC unattended after logging-in
• SMS alerts activation for important Online Activities

 What scares people from Digital Channels ?

 6 Biggest Digital Banking Fears

• Identity theft
• Technical Errors Resulting in Missing Funds
• Misuse of Information by Companies
• Lack of Documentation
• Lost or stolen Mobile Phones
• Fraudulent Apps

 Let us understand that we can overcome these and proliferate the Digital channels with confidence

 Customer Protection

• Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions
  RBI Guidelines July 6th 2017 (DBR.No.Leg.BC.78/09.07.005/2017-18)
• The systems and procedures in banks must be designed to make customers feel safe about carrying out electronic banking transactions.
• RBI Guidelines on Digital Payment Security Controls – 18-02-2021
• Online Dispute Resolution (ODR) System for Digital Payments
• Robust and dynamic fraud detection and prevention mechanism
• Mechanism to assess & mitigate the risks resulting from unauthorised transactions 
• Measure the liabilities arising out of such events

 Mobile Banking

• Telebanking
• Missed Call Balance Inquiry, Not to use 3rd Party Applications
• IMPS
• USSD
• *99#
• UPI, UPI Lite, UPI123
• BHIM
• BHARAT QR
• WALLETS

 Immediate Payment Service

• IMPS- Immediate Payment Service
• 24*7, 365 Days Instant Money Transfer Channel
• Instant Remittance – Instant confirmation
• Accessible from Mobile, ATM, Internet, branch channel
• Operational since Nov. 2010
• Input options - Mobile No & MMID, A/c No & IFSC Code, Aadhaar No
• Globally one of the first of its kind Product/Initiative
  • Appraised by Developed countries as well
• *99# -NUUP : USSD based platform facilitates Banking on normal mobile phone 

 IMPS – Immediate Mobile Payment Service

• Simplest & important mode for money remittance
• Started with SMS based Banking
• Now supports App, WAP, USSD
• Financial & Non-Financial Transaction (Bal Inquiry etc.)
• Funds Transfer - Require: Payee Mobile No., MMID & MPIN
• Multiple Platforms supported: Mobile (SMS, App, WAP and USSD), Internet Banking, ATM & Branch
• Funds Transfer possible using any of the following ways
  • Mobile No. & MMID
  • Account No. & IFSC Code
  • Aadhaar No

 USSD Channel using *99#

• Common code for all telecom operators
• Available in 12 languages including Hindi & English
• USSD msgs are not stored on phone thus better than SMS
• Financial & Non-Financial transactions
• Costs 50p for financial transactions
• Works on GSM phones
• Common Code *99*99# is adopted for Query for Aadhaar Mapper

 UPI, BHIM & TPAP UPI Apps

• UPI – Unified Payments Interface - has enhanced features than IMPS
• It has Financial & Non-financial Transactions, including -
  Funds Transfer, Bal Inquiry, Txn.history, Collect request for money etc.
• Consumer can use any bank UPI or Third Party App of his choice and can connect any Bank A/c ; Bank should be enabled for UPI
• BHIM – Bharat Interface for Money - is plain vanilla NPCI App, while Banks may have added features in their Apps
• Account is linked into BHIM App using Debit Card for that A/c Now supports through Aadhaar linked verification
• VPA – Virtual Payment Address like xxxxxxxxxx@upi is used as unique identifier used for sending and receiving money
• BHIM enables payment through VPA or QR Code scanning

 Unified Payment Interface – UPI …

• UPI pilot launch was done with 21 member banks on 11th April 2016  
• Fully operationalized from 25th August, 2016 
• Now UPI 2.0  from 16th Aug 2018 with additional features
  • One-time Mandate, 
  • Invoice Verification, 
  • Link an Overdraft Account, 
  • Additional Security through Signed Intent and QR
• Single click Two Factor authentication
• Universal Application for transaction
• Leveraging existing infrastructure
• Safer, Secured and Innovative
• Payment basis Single/ Unique Identifier
• Enable seamless merchant transactions

 UPI / BHIM

• Online Real-time Payment System
• Push & Pull Txns
• UPI Autopay
• UPI Prepaid Vouchers – for COVID-19 Vaccine (e-Rupi)
• UPI for IPO Application
• UPI Global, recently launched for Singapore
• UPI Safety Shield – 4 Point Checklist
• App PIN, UPI PIN, SIM Binding, Automatic A/c fetching based on registered mobile 
• PIN setting up requires Debit Card for each of the Account
• UPI ID (VPA) & Profile QR depend upon the App & Bank
• PIN Reset: requires last 6 digits of ATM Card + Expiry Date + OTP
• Linking of more than one A/c from any Bank, Each A/c require Card Details + OTP
• Fund Transfer enabled for Self A/c, VPA or UPI ID, QR, IFSC + A/c No.
• Setting / Forgot / Change PIN, Make A/c Default, Remove A/c
• BHIM supports Payments, Fund Tr, Bill Pay, Mandate, Gift, UPI Autopay

 UPI

• Dispute Redressal – built-in to App
• Customer complaint on PSP / TPAP App directly
• Flow TPAP 🡺 PSP 🡺 NPCI 🡺 Ombudsman
• Device Binding fail: App is unable to send SMS, Network connection, Operator is unable to send SMS (DNDC?), Handset time differs
• Only permitted A/c types can join / add, OD is allowed
• Cards without expiry date – set as 01/49
• UPI Pin remains same on different PSP / TPAP App
• Remittance thru VPA / Mobile No. / A/c + IFSC
• Contact Name & Actual Bank A/c Name may Differ, App picks up Bank A/c Name
• Limit 100K per Bank A/c per Day, 200K for Merchant payments
• UPI-OC-133-Guidelines-on-UPI-Features.pdf (npci.org.in)

 UPI Lite & UPI 123PAY

• UPI LITE is payment solution to process low value transactions that have been set at below ₹ 200. UPI LITE is intended to enable low value transactions without utilizing a Remitter bank’s core banking systems and works like an e-wallet.
• UPI One World: For Foreign Nationals/NRIs from G20 countries
• UPI 123PAY is an instant payment system for feature phone users

It includes: 

1. calling an IVR (Interactive Voice Response) number, 
2. app functionality in feature phones (SIM Embedded App), 
3. missed call-based approach and
4. proximity sound-based payments

• UPI payment through pre-defined IVR numbers (080 4516 3666 & 080 4516 3581 & 6366 200 200); IDFC First Bank, City Union Bank, UCO Bank & NSDL Payments Bank have gone live on IVR payments.

 UPI 123PAY

• Missed Call Pay: At the time of billing, the merchant will create a token with the customer’s mobile number and the bill amount of his purchase. Customer gives a missed call on the number prescribed by the merchant. Customer receives call from 08071 800 800 asking to authenticate the transaction by entering UPI PIN. This solution is developed by MissCallPay with Bank of India as the supporting bank.
• Embedded App: UPI app on feature phone which is developed by Gupshup with Airtel Payments Bank. In this type, the interested solution providers will need to partner with the feature phone mobile manufacturers (OEM) to enable a native payment app.
• Proximity sound-based payments: It has been created in collaboration with Tonetag and supported by NSDL Payments Bank. The technology uses sound waves to enable contactless and proximity data communication on any device. User can tap any phone and make UPI payments to merchants using ToneTag’s VoiceSe payment solution.

 Wallets & other Products in Mobile Banking

• UPI – Unified Payment Interface
  • Wallets from Banks based on UPI - SBI Buddy, ICICI Pockets, HDFC PayZapp, Yes Bank PhonePe, DakPay, KBL UPI etc.
  • Non-Bank entities - G-Pay, Amazon Pay, MobiKwik, Freecharge
• BHIM – Bharat Interface for Money – by NPCI & Banks
• BharatQR – UPI for Merchants – by NPCI & Banks
• Aadhaar Based Payments (ABPS)
• Mass Transport Cards – NCMC (National Common Mobility Card) or One Nation One Card – Store Value Cards (physical or electronic)
• E-Rupi - allows cashless payment solution for COVID-19 vaccination, launched on 02-Aug-2021, developed with the support of DFS and NHA, powered by NPCI. It is contactless, easy, safe and secure, keeps the details of the beneficiaries completely confidential, can be operated from feature phone. 

 E-RUPI

• Launched on 2nd August 2021
• Pre-Paid Instrument – Stored Value Voucher by NPCI
• Presently in association with DFS, NHA, MoHFW, Odisha & Tripura Govt., Banks
• Specific purpose or activity by Organizations or Government via SMS or QR code.
• Quick, Safe & Contactless Voucher distribution
• Specified beneficiary like Hospitals etc. thus Safe
• Works on SMS or QR Code, thus enabled on feature phones too

 BHIM Aadhar

• Bhim Aadhaar is Merchant Mobile App by NPCI for Merchants
• Merchants can be with any bank
• Must have certified Biometric scanner
• Customer need to link Aadhaar with his Account
• Authentication of Customer & Txn happens only thru Biometric authentication
• Bhim Aadhaar Pay Service enables settlement between five parties:
  (1) Merchant, (2) Merchant Bank (Acquirer),
  (3) NPCI, (4) Customer Bank (Issuer), (5) Customer
• Max. amount Rs.10K
• Useful for least literates unable to use electronic channels like App or Card
• Customer does not need anything except Aadhaar No. (No Card or APP)
• In case of Fin.Inclusion, BC acts as Merchant and can provide Micro ATM Services

 Mobile Wallets

• Mobile Wallets are electronic purses stored on Mobile
• These can be used like pre-paid cards or PPIs for making small payments
• Some Payment Banks have Mobile Wallets with Accounts linked to it, e.g. PayTM, Airtel Payment Bank – Airtel Money, IPPB etc.
• Other wallets like Ola Money, m-Pesa etc. are generally issued for specific merchant but provide tie ups for other payments as well

 Point of Sale Terminals – PoS, Micro-ATM

• Point-of-Sale Terminal are automated Cash Registers
• These have card swiping slot, Card Chip readers, Small Printer, Key Pad and sometimes Finger Print scanners (generally in Micro ATMs)
• These are connected to Banks Card switch through PSTN or Mobile Network links
• Nowadays Contactless and NFC PoS machines are becoming popular

 Aadhaar and e-KYC, APBS, AEPS

• Aadhaar Number issued by UIDAI has become popular for many jobs
• E-KYC for Bank A/cs, SIM issuance, Cable TV, Gas connections etc. are very simplified
• APBS – Aadhaar Payment Bridge System and
• AEPS – Aadhaar Enabled Payment System have simplified many things
• Seeding (Feeding) of Aadhaar No. in Bank A/cs facilitates
  • Direct Credits of Subsidies, DBT, MGNREGA etc. Govt. payments using APBS
  • New Account opening through e-KYC Process
  • Banking transactions through BC network using AEPS

 AePS – Aadhaar Enabled Payment System

• AePS is based on the demographic (personal details) and biometric information of an individual
• It eliminates the threat of any fraudulent activity.
• Aadhaar has provided a gateway for millions of customer to avail a formal financial services in hassle free manner
• System is designed to handle both ON-US and OFF-US requests seamlessly for all Aadhaar linked account holders 
• Services Offered 
  • Cash Deposit, Withdrawal
  • Balance Enquiry, Mini Statement
  • Aadhaar to Aadhaar Fund Transfer
  • Authentication, BHIM Aadhaar Pay
• Other Services – eKYC, Best Finger detection, Demo Auth, Tokenization, Aadhaar Seeding Status
• AePS Circulars | NPCI and AePS Notified Documents

 APBS – Aadhaar Payment Bridge System

• It is a unique payment system implemented by National Payments Corporation of India (NPCI), which uses Aadhaar number as a central key for electronically channelizing the Government subsidies and benefits in the Aadhaar Enabled Bank Accounts (AEBA) of the intended beneficiaries.
• It is based on Aadhaar Mapper setup by NPCI, acting as a link between Bank and UIDAI
• Last Bank A/c No. updated with Aadhaar No. automatically becomes link account for APBS

 NETC FASTag - 

• Electronic tolling requirements of the Indian market
• Interoperable nationwide toll payment solution
• Clearing settlement, dispute management. Interoperability
• Based on Radio Frequency Identification (RFID) technology
• FASTag (RFID Tag) affixed on the vehicle 
• Enables to make the toll payments directly from the customer’s account which is linked to FASTag or as recharge balance in FASTag.
• Now also can be used on select Parking places
• NETC Circulars - Check all notifications on FASTag | NPCI
• Check Your NETC FASTag Status

 BBPS – Bharat Bill Pay System

• The One stop destination for all recurring payments
• Different Payment Channels - Internet, Internet Banking, Mobile, Mobile-Banking, Mobile Wallets, Kiosk, ATM, Bank Branch, Agents and Business Correspondents
• Different Payment Modes - Cards (Credit, Debit and Prepaid), NEFT Internet Banking, UPI, Wallets, Aadhar based Payments and Cash
• Interoperable, Accessible, Cost Effective
• Provides for CMS, DMS, Clearing & Settlement
• NPCI acts as Bharat Bill Payment Central Unit (BBPCU)
• Bharat Bill Payment Operating Unit (BBPOU) includes Banks & Non-Banks
• BBPOU integrate with Billers & Customers
• Agents act as the customer touch points and service points
• Billers – Utility & Service Providers, Insurance, EMIs, Fastag, Education Fees, Housing Societies, Municipal Taxes / Services, Hospitals, Subscriptions
• Forthcoming – Mutual Funds, Credit Cards, RD, SIP, Clubs, Assoc, Metro Rechg
• BBPS Circulars – NPCI and BBPS Notified Documents | NPCI

 What is PPI

• It facilitates purchase of goods and services, including financial services, remittance facilities etc., against the value stored on such instruments
• These can be issued as 
  • smart cards, 
  • magnetic stripe cards, 
  • internet accounts, 
  • internet wallets, 
  • mobile accounts, 
  • mobile wallets, 
  • paper vouchers, coupons not allowed
  • any such instruments which can be used to access the prepaid amount 

 Types of PPI

• Closed System PPIs: Facilitates the purchase of goods and services from Issuing entity only, but No cash withdrawal. 
• These cannot be used for payments or settlement for third party services, 
• It is not classified as payment systems 
• It does not require approval / authorisation by the RBI. 
• Open System PPIs: issued only by banks and are used at any merchant. 
• Now referred as Pre-Paid Instruments and are of two types (next slide)
• Such PPIs facilitate cash withdrawal at ATMs and use at Point of Sale (PoS) / Business Correspondents (BCs).

 Small PPI / Min.Details PPI – With Cash Loading / With No-Cash Loading

• Banks & Non-Banks can issue Small PPI after obtaining min.details
  (Mobile No., OTP, Name & any OVD verifying name)
• Used only for purchase of goods and services, Funds transfer & cash withdrawal not permitted on Small PPI
• Can be used at a group of clearly identified merchant locations / establishments having specific contract with the issuer (or contract through a payment aggregator / payment gateway)
• Max loading 10K / month, Yearly loading max 120K, Balance not to exceed 10K, To Debit 10K / month
• Need to convert them to Full-KYC PPI in 24 months
• Closure of PPI - proceeds transferred to a bank account after complying with KYC requirements of PPI holder
• After closure, Small PPI cannot be issued again to same mobile no. & min.details

 Issuance, Loading, Reloading of PPIs

• PPIs can be Reloadable or Single use Non-reloadable
• Issuers to have clearly laid down Board Approved Policy
• Authorised approved names to be displayed prominently on PPI
• No interest payable on PPI
• Cash loading limited to Rs.50K per month within overall limit
• Other forms of loading / reloading as thru A/cs, Cards, IB, ATM, BC etc.
• PPI to be issued only as Cards, Wallets and such forms
• Only Electronic Meal Coupons, Re-loadable type (No paper based Meals voucher )
• No Cash withdrawals
• Clear Board guidelines for engaging agents, outlets etc.

 Full-KYC PPIs

• Banks and non-Banks permitted to issue
• KYC is compulsory, V-CIP or Video based KYC permitted
• Amt.Outstdg. At any time Rs.2 Lac (May 2021)
• Funds transfer to own A/c or source a/c permitted
• Pre-Registered Beneficiaries allowed for Funds transfer
• Fund Transfer Limit Rs.2 Lac per month per beneficiary
• Funds Transfer for other cases Rs.10K per month
• Funds Transfer to other PPI & Cards allowed within given limits
• No separate limits for Goods & Services
• Issuer can set lower limits within overall limits
• Closer allowed with transfer of balance to Bank A/c
• Clear communication of Terms & Conditions by SMS / e-mail / post etc.
• Cash withdrawal allowed on Bank issued PPI, on POS its 2K / 10K pm
• Cash withdrawal only 2K / 10K pm on non-Bank issued PPI

 Some unique PPIs

• Gift Card – Max value Rs.10k, Non-reloadable, no Cash out or A/c Transfer, can be re-validated, KYC of the purchaser needed
• PPI-MTS (Mass Transit System) – issued by MTS Operator,
  Re-loadable, Allied Related Merchants / same premises, Max Outstg. 3k, PPIs can be re-validated, for Automated fare collection,
  Cash-out / Refund / Funds Transfer not permitted
• RBI Master Directions: RBI/DPSS/2021-22/82 CO.DPSS.POLC.No.S-479/02.14.006/2021-22 27-08-21 (Updaed 12-11-2021)
• List of PPI Issuers – 
• https://m.rbi.org.in/Scripts/PublicationsView.aspx?id=12043

 Prepaid Instruments in India

• PPI are governed and regulated by RBI
• Major changes brought in year 2016 & 2021
• Since than RBI has been updating the regulations through Master Circulars every year bringing in more strength, robustness and trust in all the stake holders
• RBI - Master Directions on Pre Paid Instruments
• RBI/DPSS/2017-18/58 - Master Direction DPSS.CO.PD.No.1164/02.14.006/2017-18 Updated 17th November 2020
• Reserve Bank of India - Master Directions (rbi.org.in) Nov 2021
• RBI/DPSS/2021-22/82 – Master Direction CO.DPSS.POLC.No.S-479/02.14.006/2021-22 Updated 10th February 2023
• RBI - Notifications (rbi.org.in)
  RBI/2021-22/40 - DPSS.CO.PD.No.S-99/02.14.006/2021 - 22 May 19, 2021

(i) Mandating Interoperability – By March 31, 2022; Gift & MTS exempted

(ii) Increasing the Limit to ₹2 lakh for Full-KYC PPIs; and 

(iii) Permitting Cash Withdrawal from Full-KYC PPIs of Non-Bank PPI Issuers