A facilitative regulatory framework for the payments sector is a catalyst for achieving broader social objectives like financial inclusion. In its recently notified regulatory framework for prepaid payment instruments (PPIs), however, the Reserve Bank of India (RBI) has simply chosen to admire the proverbial river from its banks. Regulations permit up to Rs50,000 to be paid to beneficiaries in cash under the money transfer service scheme, whereas the RDA is mandatorily account-based. Furthermore, PPIs can innovate around this development by, say, providing credit cards secured against the balance in PPIs. A facilitative regulatory framework for the payments sector is a catalyst for achieving broader social objectives like financial inclusion.

Source: Mint November 13, 2017 18:00 UTC