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Decoded: The tizzy over RBI's ban on loading PPIs from credit lines

PPIs are instruments that facilitate the purchase of goods and services, conduct of financial services, enable remittance facilities, etc., against the value stored in them

PPIs have huge competitors from another corner of the same market, the payments banks space.

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Several experts said the notification was for non-bank PPI issuers, so there is ambiguity around whether bank-led PPIs will be exempted from this

Subrata Panda Mumbai

6 min read Last Updated : Jun 23 2022 | 10:30 PM IST

Earlier this week, a Reserve Bank of India (RBI) notification shook the fintech industry. The RBI said the master directions on prepaid payment instruments (PPIs) do not permit loading of PPIs from credit lines. There is a lot of confusion among players regarding the contents of the notification, and various industry associations are looking to approach the regulator to get clarity on the matter.

What are PPIs?

PPIs are instruments that facilitate the purchase of goods and services, conduct of financial services, enable remittance facilities, etc., against the value stored in them. As of April 5, 2021, the RBI has

Topics : Reserve Bank of India RBI PayU India PhonePe financial services Fintech sector payment apps payment systems NBFCs

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