{"id":11793,"date":"2023-06-07T09:47:57","date_gmt":"2023-06-07T04:17:57","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=11793"},"modified":"2025-03-30T05:29:14","modified_gmt":"2025-03-29T23:59:14","slug":"prepaid-payment-instrument-ppi","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/prepaid-payment-instrument-ppi\/","title":{"rendered":"Prepaid Payment Instrument (PPI)"},"content":{"rendered":"<h2><strong>About Prepaid Payment Instruments:<\/strong><\/h2>\n<ul>\n<li>These are instruments that <strong>facilitate the purchase of goods and services<\/strong>, conduct of financial services and enable remittance facilities, among others, against the money stored in them. PPIs can be issued as cards or wallets.<\/li>\n<li>There are two types of PPIs <strong>\u2013 small PPIs and full-KYC<\/strong> (know your customer) PPIs.<\/li>\n<li>Further, small PPIs are categorized as \u2013 PPIs up to Rs 10,000 (with cash loading facility) and PPIs up to Rs 10,000 (with no cash loading facility).<\/li>\n<li>PPIs can be <strong>loaded\/reloaded by cash, debit to a bank account<\/strong>, or credit and debit cards.<\/li>\n<li>The cash loading of PPIs is <strong>limited to Rs 50,000 per month subject<\/strong> to the overall limit of the PPI.<\/li>\n<\/ul>\n<h3>Who can issue PPI instruments?<\/h3>\n<ul>\n<li>PPIs can be <strong>issued by banks and non-banks<\/strong> after obtaining approval from the RBI.<\/li>\n<li>Some of the approved PPI issuing banks are; Airtel Payments Bank, Axis Bank, Bank of Baroda, Jio Payments Bank, Kotak Mahindra Bank etc.<\/li>\n<\/ul>\n<h3>Key Facts about Deposit Insurance and Credit Guarantee Corporation<\/h3>\n<ul>\n<li>It is a <strong>statutory body<\/strong> established under the Deposit Insurance and Credit Guarantee Corporation Act, of 1961.<\/li>\n<li>It is a <strong>wholly-owned subsidiary<\/strong> of the <strong>Reserve Bank of India<\/strong> (RBI).<\/li>\n<li>It provides deposit insurance that works as a <strong>protection cover for bank deposit<\/strong> holders when the bank fails to pay its depositors.<\/li>\n<li>The agency insures all kinds of deposit accounts of a bank, such as savings, current, recurring, and fixed deposits <strong>up to a limit of Rs. 5 lakh per account holder<\/strong> per bank.<\/li>\n<li>In case an individual&#8217;s deposit amount exceeds Rs.5 lakh in a single bank, only Rs.5 lakh, including the principal and interest, will be paid by DICGC if the bank becomes bankrupt.<\/li>\n<\/ul>\n<h3>What DICGC Does Not Cover?<\/h3>\n<ul>\n<li>Deposits of <strong>state or Central governments<\/strong>, <strong>foreign governments<\/strong>, Inter-bank deposits, and state land development banks depositing with the state cooperative bank.<\/li>\n<li>Funds that are due on account of India and deposits received outside India and funds exempted by the corporation with the previous approval from RBI.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3>Q1) What is Remittance?<\/h3>\n<p>Remittance refers to the transfer of money or funds by a person who is working or residing in a foreign country back to their home country.<\/p>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/deposit-insurance-cover-for-ppis-how-will-customers-benefit-8648010\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Deposit insurance cover for PPIs: How will customers benefit?<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prepaid Payment Instrument (PPI) are instruments that facilitate the purchase of goods and services, conduct of financial services and enable remittance facilities<\/p>\n","protected":false},"author":5,"featured_media":11794,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-11793","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/11793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=11793"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/11793\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/11794"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=11793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=11793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=11793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}