NEWS & ADVICE : CREDIT CARDS
Pay government tax, school and college fees using prepaid payment instruments
By Ankit Sharma
Jun 15, 2012
Print    Email    RSS   

The banking and monetary regulator, RBI has brought about some changes in the prepaid payment instruments issued by banks and non banks. These include instruments like Airtel money, where one can make payments using a mobile phone.

According to RBI release, semi closed prepaid payment instruments can make payments for fees of schools and colleges and also use to pay government taxes. The ceiling for such payments has been fixed at Rs. 10,000.

The RBI has also stated that there isn't a need of separate KYC for such payment instruments. These instruments are very limited in range with regard to acceptance. Only merchants who have had contract with the issuers accept the payment with the instrument.

However, these instruments don't entitle the holder to withdraw cash or redemption in lieu of money. RBI has also directed the issuers to not issue the same holder on more than one occasion.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Health rewards credit cards in India: A...
How to select a co-branded credit card?
Spoiled credit history? - Get a secured...
Hit by the slowdown? Manage your Credit Card!
Kisan Credit Card: Allowing easy credit...


i want to a dsa code for credit card
Good Morning, i forgot my FCMB Account Number and...
Radhey@09646870399 @Escoℛts In#Chandigarh...
Radhey@09646870399 @Escoℛt In#Chandigarh...

NEWS THIS WEEK
91st Founders day of the Karnataka Bank Feb 18, 2015
Banks on strike from 25th February Feb 16, 2015
SBT bank postponed the Open House meet Feb 13, 2015
Yes bank planning to line up for credit card portfolio Feb 12, 2015
Pocket banking – new app by ICICI bank Feb 11, 2015
News Archive