RBI lets all co-op banks with ATMs issue semi-closed pre-paid cards

RBI lets all co-op banks with ATMs issue semi-closed pre-paid cards

FPJ BureauUpdated: Thursday, May 30, 2019, 06:32 AM IST
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 New Delhi : The Reserve Bank of India on Friday allowed all co-operative banks with their own network of automated teller machines to issue semi-closed pre-paid payment instruments, provided there are no curbs on acceptance or withdrawal of deposits from these banks. Semi-closed pre-paid payment instruments allow for the purchase of goods and services at certain merchant locations as per a contract with the issuer.

These instruments can’t be used for cash withdrawal or redemption by the holder. The regulator also allowed eligible co-operative banks to issue open system pre-paid payment instruments, which can be used to buy goods and services through point-of-sale terminals.

These instruments can also be used to withdraw cash from automated teller machines and business correspondents.

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