NEW DELHI: 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. The move is part of Bajaj Finance’s broader strategy to expand its digital offerings.
“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.
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. 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. Cash withdrawal services, however, still remains prohibited.