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Bajaj Finance gets RBI approval for prepaid payment business

By Lokmat English Desk | Published: May 07, 2021 5:00 PM

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Bajaj Finance is all set to join the likes of Paytm and Amazon in the prepaid payment segment with the Reserve Bank of India (RBI) approving the non-bank lender’s foray with perpetual validity.
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The move is part of Bajaj Finance’s broader strategy to expand its digital offerings.
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“We wish to inform that the RBI vide its letter dated 4 May 2021, has granted an authorisation to the Company for issuance and operation of semi-closed Prepaid Payment Instruments with perpetual validity,” the company said.
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A semi-closed PPI is effectively a digital wallet but one through which transactions can flow to merchants and establishments other than the one offering the wallet services
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The wallet will become a part of Bajaj Pay, which is the company’s bid to provide an integrated platform for all payments solutions. Semi-closed System PPIs allow you to make payments to multiple merchants through the platform.
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Cash withdrawal services, however, still remains prohibited.
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Besides, it can be like smart card, magnetic chip voucher, mobile wallet. Values ​​can be transferred from cash, debit cards, credit cards and other PPIs.
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This PPI does not allow you to make cash withdrawals or third party fund transfers. You can use this system to pay for goods and services.
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You can pay multiple merchants through Bajaj Pay. However, cash withdrawals are not allowed. You will need KYC for PPI up to Rs 10,000.
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If you are transacting up to Rs 1 lakh, you will have to complete all the KYC procedures. Once Bajaj Pay enters the market, users will have a new payment option.
Tags: Bajaj Finance Limited
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