Mumbai : Easing rules on issuance of prepaid payments instruments (PPIs), the Reserve Bank on Tuesday allowed banks to facilitate such devices to unlisted corporates, public entities like municipal corporations and urban local bodies to deepen digital transaction system.
“In order to facilitate greater adoption of digital payments, banks may include other entities/employers such as unlisted corporates, partnership firms, sole proprietorship, public organisations like municipal corporations, urban local bodies (employers) for onward issuance to their staff or contract workers,” the RBI said in a notification.
Earlier, companies were required to be listed on any of the stock exchanges in India to be eligible to get prepaid instruments issued by banks. The central bank also instructed banks to issue PPIs to only those entities or employers that have a bank account with them and also upon an undertaking that they do not avail this facility from any other bank, reports PTI.
Verification of the identity of the staff / employees / contract workers, etc shall be the responsibility of the concerned employer, RBI said, adding the bank should put in place proper systems to capture and maintain details of the employees to whom the PPIs are issued.
“Banks shall load/reload PPIs after obtaining necessary authorisation and details of the employees/staff/contract workers, etc. from the employers,” RBI said.