Current Affairs PDF

RBI proposed to introduce PPI for Mass Transit Systems

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

The Reserve Bank of India (RBI) on Thursday proposed to introduce a separate category of semi-closed Prepaid Payment Instruments (PPI) for Mass Transit System (PPI-MTS).

The PPI-MTS can be used within the mass transit systems and will have a minimum validity of six months from date of issue.

Such PPIs will be re-loadable instruments subject to an outstanding limit of Rs.2,000 at any point of time, RBI suggested in a draft circular for public comments.

PPI for mass transit systems, which handle a large number of small value cash payments, will facilitate the migration to electronic payments in line with the country’s vision of moving to a less-cash society, the RBI added.Comments and suggestions should reach the RBI on or before June 15, 2015.

The RBI said that it has been receiving requests from various segments, including providers of mass transit services, such as, metro train and road transport services, indicating the need for PPIs catering to the requirements of this segment to enhance commuter convenience.

Guidelines on NSFR

  • The Reserve Bank of India also proposed to make Net Stable Funding Ratio (NSFR) applicable to banks in India from January 1, 2018.
  • RBI released on its website draft guidelines on NSFR under Basel III Framework on liquidity standards for banks.
  • It has requested for comments on these guidelines by email at the earliest, but not later than June 26, 2015.
  • The objective of NSFR is to ensure that banks maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities.
  • The NSFR limits over-reliance on short-term wholesale funding, encourages better assessment of funding risk across all on- and off-balance sheet items, and promotes funding stability.