Retail Banking
Classification of PPIs
PPIs are usually classified into 5 categories as follows:
i) Closed System Payment Instruments:
They are usually issued by businesses/organizations for buying their own products or services only. •These instruments do not permit cash withdrawal. E.g. - Delhi Metro Prepaid card - these can be used for their respective establishments only.
ii) Semi-Closed System Payment Instruments:
These are redeemable at a group of clearly identified establishments or stores who enter into a contract with the issuer to accept that as a payment instrument. It does not permit cash withdrawal. E.g. Sodexo cards are redeemable at designated stores only.
iii) Semi-Open System Payment Instruments:
These payment instruments can be used at any card accepting point of sale terminals for purchase of goods and services. It does not permit cash withdrawals. E.g. Gift cards
iv) Open System Payment Instruments:
They can be used for purchasing goods and services and provide theoption of cash withdrawal as well from ATMs.E.g. Debit cards, Credit cards.
v) Mobile Prepaid Instruments:
The value of talk time issued by mobile service provider can also be used to avail other 'value added services' from them. E.g. You can use 'Airtel Money' balance to avail caller tune benefits or other packs from Airtel.
Classification of PPIs
PPIs are usually classified into 5 categories as follows:
i) Closed System Payment Instruments:
They are usually issued by businesses/organizations for buying their own products or services only. •These instruments do not permit cash withdrawal. E.g. - Delhi Metro Prepaid card - these can be used for their respective establishments only.
ii) Semi-Closed System Payment Instruments:
These are redeemable at a group of clearly identified establishments or stores who enter into a contract with the issuer to accept that as a payment instrument. It does not permit cash withdrawal. E.g. Sodexo cards are redeemable at designated stores only.
iii) Semi-Open System Payment Instruments:
These payment instruments can be used at any card accepting point of sale terminals for purchase of goods and services. It does not permit cash withdrawals. E.g. Gift cards
iv) Open System Payment Instruments:
They can be used for purchasing goods and services and provide theoption of cash withdrawal as well from ATMs.E.g. Debit cards, Credit cards.
v) Mobile Prepaid Instruments:
The value of talk time issued by mobile service provider can also be used to avail other 'value added services' from them. E.g. You can use 'Airtel Money' balance to avail caller tune benefits or other packs from Airtel.
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