A 'Semi-Closed Prepaid Payment' (PPI) product, acting as a small value payment gateway, has been introduced to promote digital transactions. It was introduced by the Reserve Bank on Tuesday. With this, buying goods up to Rs 10,000 and availing such services can be availed. One can add money from a bank account in this product. This can be in card or electronic form. In a notification, RBI said, it has been decided to introduce new types of semi-closed PPIs to promote small value digital transactions and facilitate the consumer. Currently, three types of PPIs have been introduced, including closed system, semi-closed and open PPI.

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What is a closed PPI: It can only purchase goods and services, not cash withdrawals. Nor can it be paid to any third party.

Semi-Closed: This facility facilitates sending money with the purchase of goods and services.

Open PPI: This facility also has a cash withdrawal facility among other facilities.

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Such products can be issued by banks and non-banking units. For this, it will be released after taking minimum information from the concerned customers. Minimum details include a one-time (one-time PIN-OTP) PIN with verified mobile number and name declaration and unique identification number. According to RBI, money can be filled in this PPI and it can be issued in card or electronic form. Money can be transferred from the bank account only. It cannot be filled more than Rs 10,000 in a given month. It will not exceed Rs 1,20,000 in a financial year. This type of PPI can only be used in the purchase of goods and services. It cannot be used to send money.

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