Bajaj Finance receives RBI nod for Prepaid Payment Business

Bajaj Finance is all in motion to join the likes of Paytm and Amazon in the prepaid recompense sector with the Reserve Bank of India (RBI) approving the non-bank lender’s venture with continuous validity. The move is part of Bajaj Finance’s broader strategy to expand its digital offerings.

The Company, states, “We wish to inform that the RBI vide its letter dated 4 May 2021, has granted an authorization to the Company for issuance and operation of semi-closed Prepaid Payment Instruments with perpetual validity.”

A semi-closed PPI is efficiently a digital wallet but one through which business can flow to merchants and establishments other than the one contribution the wallet services. The wallet will become a fraction of Bajaj Pay, which is the company’s bid to provide an incorporated platform for all payments services. Semi-closed System PPIs allow you to make payments to multiple merchants throughout the platform. Cash withdrawal services, however, still remain forbidden.