Only These Banks Can Issue Pre -Paid Payment Instruments
RBI has recently released its new guidelines regarding the issue of E-Wallets and other Pre-Paid Payment Instruments.
The users of Pre-paid Payment Instruments (PPI) like mobile and electronic wallets are advised that only Non-Bank entities that are authorized by RBI, under the Payment and Settlement Systems Act 2007 can issue PPI Wallets for purchase of goods and services from any third party or money transfer in India.
Talking about the banks, only the Permitted Banks are supposed to issue PPI wallets for purchase of goods and services from the third parties and money transfer within the country and can be used for withdrawing cash.
Banks including Andhra Bank, Allahabad Bank, Axis Bank, Bank Of Baroda, Canara, Dena, Central Bank Of India, HDFC, ICICI, IDBI, Paytm Payments Bank Ltd, Punjab National Bank, SBI, Federal Bank, UCO, Union, YES Bank and many other are permitted to issue Pre-Paid Cards in India.
The list of Non-Banks is subdivided as per their structure. The Card Payment Networks like MasterCard Asia/ Pacific Pte Ltd, National Payments Corporation of India, Visa Worldwide Pte Limited, American Express Banking Corp. and National Payments Corporation of India are being approved for issuing credit cards/ debit cards/ prepaid cards issued by banks and co-branded credit cards issued by Non-Banking Financial Companies (NBFCs) or any other entity.
The detailed list of all Banks and Non-Banks is available on Reserve Bank’s website.
The Payment Gateways or the entities that are not authorized by RBI are required to do their transactions only through Nodal Account as per the guideline of Reserve Banks of November 24, 2009.
Since E-Wallets and other digital payments options are elevating, RBI wants all of the public to make an informed choice about the same.
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