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Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?
1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.
2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.
3. The interest payable on PPI balances is decided by the RBI.
Select the correct answer using the code given below.
1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.
2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.
3. The interest payable on PPI balances is decided by the RBI.
Select the correct answer using the code given below.
- a)1 only
- b)1 and 2 only
- c)2 and 3 only
- d)1, 2 and 3
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been p...
- PPIs are instruments that facilitate the purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holders by cash, by debit to a bank account, or by credit card. Hence, statement 1 is correct.
- The pre-paid instruments can be issued as smart cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers and any such instrument which can be used to access the pre-paid amount.
- A company incorporated in India and registered under the Companies Act, 1956 / Companies Act, 2013, having a minimum paid-up capital of Rs. 5 crore and minimum positive net worth of Rs. 1 crore at all the times are permitted to issue PPIs in India.
- PPIs can be reloadable or non-reloadable. The loading/reloading of PPIs shall be through payment instruments issued by entities regulated in India and shall be in Indian Rupees (INR) only. Banks are permitted to issue and reload such payment instruments at their branches and ATMs against payment by cash/debit to bank account/credit card and through their business correspondents (BCs). In the case of non-reloadable PPIs, the outstanding amount in it can be transferred to a new similar PPI of the same issuer, upon expiry. Hence, statement 2 is correct.
- PPIs that can be issued in the country are classified under three types viz.
- (i) Closed System PPIs
- (ii) Semi-closed System PPIs
- (iii) Open System PPIs.
(a) Closed System PPIs: These are payment instruments issued by an entity for facilitating the purchase of goods and services from it. These instruments do not permit cash withdrawal or redemption. As these instruments do not facilitate payments and settlement for third party services, the issue and operation of such instruments are not classified as payment systems. Hence, RBI approval is not required for issuing them. Eg. Many of the web portals for online purchases /shopping - Make my Trip, Flipkart, Jabong, etc. run wallets for its customers. Pre-paid cards of mobile companies also belong to this category.
(b) Semi-closed System PPIs: These are payment instruments that can be used for the purchase of goods and services, including financial services at a group of clearly identified merchant locations/ establishments which have a specific contract with the issuer to accept the payment instruments. These instruments do not permit cash withdrawal or redemption by the holder. Such PPIs are non- reloadable in nature; The above two can be issued only in electronic form. o Open System PPIs: These PPIs are issued only by banks (approved by RBI) and are used at any merchant for purchase of goods and services, including financial services, remittance facilities, etc. Cash withdrawal at ATMs / Points of Sale (PoS) terminals / Business Correspondents (BCs) are also allowed through such PPIs.- No interest is payable on PPI balances. Hence, statement 3 is not correct.
Hence Option B is correct.
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Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been p...
Prepaid Payment Instruments (PPIs) in India
Introduction:
Prepaid Payment Instruments (PPIs) are a type of electronic payment instruments that facilitate the purchase of goods and services against the value stored on such instruments. These instruments have gained significant popularity in India, especially with the rise of digital payments and the government's push towards a cashless economy. PPIs like Paytm and Mobikwik have played a crucial role in promoting digital payments in the country.
Statement 1: They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.
This statement is correct. Prepaid Payment Instruments (PPIs) allow users to store a certain amount of money in their digital wallets, which can be used for making payments for various goods and services. These instruments act as a virtual substitute for physical cash, enabling users to make transactions conveniently and securely.
Statement 2: The loading/reloading of PPIs shall be in Indian Rupees (INR) only.
This statement is also correct. As per the guidelines issued by the Reserve Bank of India (RBI), the loading and reloading of PPIs must be done only in Indian Rupees (INR). This ensures that the transactions conducted through PPIs remain within the national currency and adhere to the regulations set by the central bank.
Statement 3: The interest payable on PPI balances is decided by the RBI.
This statement is incorrect. The Reserve Bank of India (RBI) does not determine the interest payable on PPI balances. The interest rates, if any, on PPI balances are decided by the respective payment service providers, such as Paytm or Mobikwik. These providers may offer different interest rates or incentives to attract customers, but the RBI does not have a role in setting or regulating these rates.
Conclusion:
In summary, Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been instrumental in promoting digital payments in India. PPIs facilitate the purchase of goods and services against the value stored on such instruments. The loading and reloading of PPIs are done in Indian Rupees (INR) only, as per RBI guidelines. However, the interest payable on PPI balances is not decided by the RBI but by the respective payment service providers.
Introduction:
Prepaid Payment Instruments (PPIs) are a type of electronic payment instruments that facilitate the purchase of goods and services against the value stored on such instruments. These instruments have gained significant popularity in India, especially with the rise of digital payments and the government's push towards a cashless economy. PPIs like Paytm and Mobikwik have played a crucial role in promoting digital payments in the country.
Statement 1: They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.
This statement is correct. Prepaid Payment Instruments (PPIs) allow users to store a certain amount of money in their digital wallets, which can be used for making payments for various goods and services. These instruments act as a virtual substitute for physical cash, enabling users to make transactions conveniently and securely.
Statement 2: The loading/reloading of PPIs shall be in Indian Rupees (INR) only.
This statement is also correct. As per the guidelines issued by the Reserve Bank of India (RBI), the loading and reloading of PPIs must be done only in Indian Rupees (INR). This ensures that the transactions conducted through PPIs remain within the national currency and adhere to the regulations set by the central bank.
Statement 3: The interest payable on PPI balances is decided by the RBI.
This statement is incorrect. The Reserve Bank of India (RBI) does not determine the interest payable on PPI balances. The interest rates, if any, on PPI balances are decided by the respective payment service providers, such as Paytm or Mobikwik. These providers may offer different interest rates or incentives to attract customers, but the RBI does not have a role in setting or regulating these rates.
Conclusion:
In summary, Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been instrumental in promoting digital payments in India. PPIs facilitate the purchase of goods and services against the value stored on such instruments. The loading and reloading of PPIs are done in Indian Rupees (INR) only, as per RBI guidelines. However, the interest payable on PPI balances is not decided by the RBI but by the respective payment service providers.
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Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been p...
- PPIs are instruments that facilitate the purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holders by cash, by debit to a bank account, or by credit card. Hence, statement 1 is correct.
- The pre-paid instruments can be issued as smart cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers and any such instrument which can be used to access the pre-paid amount.
- A company incorporated in India and registered under the Companies Act, 1956 / Companies Act, 2013, having a minimum paid-up capital of Rs. 5 crore and minimum positive net worth of Rs. 1 crore at all the times are permitted to issue PPIs in India.
- PPIs can be reloadable or non-reloadable. The loading/reloading of PPIs shall be through payment instruments issued by entities regulated in India and shall be in Indian Rupees (INR) only. Banks are permitted to issue and reload such payment instruments at their branches and ATMs against payment by cash/debit to bank account/credit card and through their business correspondents (BCs). In the case of non-reloadable PPIs, the outstanding amount in it can be transferred to a new similar PPI of the same issuer, upon expiry. Hence, statement 2 is correct.
- PPIs that can be issued in the country are classified under three types viz. (i) Closed System PPIs, (ii) Semi-closed System PPIs, and (iii) Open System PPIs.
(a) Closed System PPIs: These are payment instruments issued by an entity for facilitating the purchase of goods and services from it. These instruments do not permit cash withdrawal or redemption. As these instruments do not facilitate payments and settlement for third party services, the issue and operation of such instruments are not classified as payment systems. Hence, RBI approval is not required for issuing them. Eg. Many of the web portals for online purchases /shopping - Make my Trip, Flipkart, Jabong, etc. run wallets for its customers. Pre-paid cards of mobile companies also belong to this category.
(b) Semi-closed System PPIs: These are payment instruments that can be used for the purchase of goods and services, including financial services at a group of clearly identified merchant locations/ establishments which have a specific contract with the issuer to accept the payment instruments. These instruments do not permit cash withdrawal or redemption by the holder. Such PPIs are non- reloadable in nature; The above two can be issued only in electronic form. o Open System PPIs: These PPIs are issued only by banks (approved by RBI) and are used at any merchant for purchase of goods and services, including financial services, remittance facilities, etc. Cash withdrawal at ATMs / Points of Sale (PoS) terminals / Business Correspondents (BCs) are also allowed through such PPIs. - No interest is payable on PPI balances. Hence, statement 3 is not correct.
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Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.3. The interest payable on PPI balances is decided by the RBI.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?
Question Description
Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.3. The interest payable on PPI balances is decided by the RBI.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.3. The interest payable on PPI balances is decided by the RBI.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.3. The interest payable on PPI balances is decided by the RBI.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.3. The interest payable on PPI balances is decided by the RBI.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.3. The interest payable on PPI balances is decided by the RBI.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.3. The interest payable on PPI balances is decided by the RBI.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
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Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.3. The interest payable on PPI balances is decided by the RBI.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.3. The interest payable on PPI balances is decided by the RBI.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.3. The interest payable on PPI balances is decided by the RBI.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Prepaid Payment Instruments (PPIs) like Paytm and Mobikwik have been playing an important role in promoting digital payments in India. Which of the following statements is/are correct regarding Prepaid Payment Instruments (PPIs)?1. They are instruments that facilitate the purchase of goods and services against the value stored on such instruments.2. The loading/reloading of PPIs shall be in Indian Rupees (INR) only.3. The interest payable on PPI balances is decided by the RBI.Select the correct answer using the code given below.a)1 onlyb)1 and 2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice UPSC tests.
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