RBI GUIDELINES FOR PREPAID INSTRUMENTS IN INDIA

Reserve Bank of India has issued guidelines for the operation of prepaid instruments use in india with a circular number 512 dated 04-05-2011. In this guideline by Reserve Bank of India, there is a complete summary of the maximum value use and end process. 

What is prepaid instruments:- These instruments are the a type of money by which one can purchase goods and service against the money stored in it. The prepaid instruments may be many types like.

1. smart cards
2. magnetic strip cards
3. internet account
4. mobile banking
5. mobile cards
6. debit cards'
7. credit cards
8. paper vouchers

But the transactions with mobile to purchase the goods and services are only limited to banks as they only issue the facility of mobile banking in india. 

So in this regard RBI has issued some guidelines which are as under.

1. prepaid instruments maximum value is Rupees 5000.
2. Prepaid instruments purchasing is only against the cash, or banking transaction and not aginst the talktime or value in the mobile phone.
3. Prepaid instruments are only to buy goods and services and not for transfer the value of cards to other person.

Reserve bank of India has also decided to bring another prepaid instruments cards which will be semi closed m-wallet on par along with other semi closed prepaid cards. The features of this new m-wallet cards are as follos.

1. the maximum value of these cards will be 50000 rupees.
2. all the other features are same as on the mobile payment system discussed above.
3. If you want to see the guidelines click here

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