Prepaid payment instruments

Prepaid payment instruments

  • The prepaid payment instruments that may be issued within the nation are categorised underneath following classes:

Closed System Payment Instruments

  • These are payment instruments issued by an individual for facilitating the acquisition of products and providers from him/her/it.
  • Closed wallets are wallets that are issued by a company to a consumer for purchasing items and providers solely from that firm.
  • Examples: Bigbasket Pockets, Cleartrip Pockets.

Semi-Closed System Payment Instruments

  • These payment instruments are redeemable at a group of clearly recognized retailers that contract particularly with the issuer to simply accept the fee instrument.
  • These devices don’t allow money withdrawal or redemption by the holder.
  • Instance: Oxigen Pockets,  Mobikwik Pockets

Semi-open System Payment Instruments

  • These are payment instruments that can be utilized to buy items and providers at any card-accepting service provider areas (Level of sale terminals).
  • These instruments don’t allow money withdrawal or redemption by the holder.

Open System Payment Instruments

  • These payment instruments can be utilized for buy of products and providers and likewise allow money withdrawal at ATMs, Merchant Local Locations, and automatic enterprise correspondents.
  • Examples: Visa, Mastercard, RuPay

Mobile Prepaid Instruments

  • These are pay as you go discuss time devices issued by cell service suppliers.
  • This discuss time worth can be used to buy ‘worth added service’ from the cell service supplier or third-party service suppliers.

Eligibility

  • Banks and Non-Banking Financial Corporations (NBFC), who adjust to the eligibility standards, can be permitted to problem all classes of pay as you go fee devices.
  • Solely banks permitted to offer Cell Banking Transactions by the Reserve Bank of India shall be permitted to launch cell based mostly pay as you go fee devices.
  • Different entities can be permitted to problem solely closed system pay as you go fee devices and semi-closed system pay as you go fee devices.
  • Cell Service Suppliers are permitted to problem cell pay as you go worth. Along with talk-value using such pay as you go worth as a fee instrument shall be restricted to the acquisition of solely such worth added digital contents or providers to be used on the cell phones. The usage of cell pay as you go worth for buy of different items and providers shall not be permitted.

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