Prepaid Payment Instruments Current Affairs
The Current Affairs Daily Digest for October 5-6, 2017 with important tid-bits on current affairs.
Andhra Pradesh signs MoU with Mastercard
Andhra Pradesh government has entered into memorandum of understanding (MoU) with Mastercard to pave way for digital financial transactions in a secure environment. The MoU will help Andhra Pradesh government in adopting and hastening innovations such as digital payments and launch financial inclusion programmes.
Pooja Kadian wins gold medal at Wushu World Championships
India’s Pooja Kadian created history by winning India’s first ever gold medal at Wushu World Championships in Kazan, Russia. In the final Pooja defeated Evgeniya Stepanova. Among other Indian winners, Rameshchandra Singh Moirangthem won bronze medal in men’s Sanda 48 kg category. Bhanu Pratap Singh won another Bronze medal in men’s Sanda 60 kg category. Rajinder Singh also won a bronze medal in the men’s 90 kg category.
Wushu is an exhibition and a full-contact sport derived from traditional Chinese martial arts. It is international sport governed through the International Wushu Federation (IWUF).
First ASEAN India Music Festival held at Purana Qila in New Delhi
The first ever ASEAN-India Music Festival was held at Purana Quila in New Delhi. The 3 day festival was organised by External Affairs Ministry in collaboration with Culture Ministry to celebrate the 25th year anniversary of ASEAN-India Dialogue Relations. The Festival aimed to boost cultural influences among peoples of ASEAN member states and India. It will witness eclectic performances by musicians from ASEAN countries’ bands such as Cherpen, The Ugly Band, Tim De Cotta, Red Bamboo among others.
RBI to allow inter-operability in prepaid payment instruments
Reserve Bank of India is going to allow inter-operability among prepaid payment instruments (PPI) soon. It will enable users to transfer funds from one mobile wallet to another as per the vision for Payment and Settlement Systems in the country. PPIs which include the likes of e-wallets, gift cards and meal coupons are used as substitutes for cash.
The Ministry of Electronics and Information Technology (MEITY) has issued draft Information Technology (Security of Prepaid Payment Instruments) Rules 2017 for Prepaid Payment Instruments (PPI) company or e wallet firms.
The draft rules seek to ensure integrity, security and confidentiality of electronic payments made through PPIs. It covers an entire spectrum for protecting consumer information, especially financial data.
Key Features of the Rules
- Definition of e-PPI issuer: Person operating a payment system issuing prepaid payment instruments to individuals or organisations under the aegis of Reserve Bank of India (RBI).
- Information security policy: Mandatory for e-PPI issuers to develop an information security policy that ensures that the systems operated by them are secure.
- Risk assessment: Mandatory for e-PPI to carry out risk assessment to spot security risks and also ensure adequate due diligence is done before issuing PPIs.
- Chief grievance officer: e-PPIs should appoint a chief grievance officer with his contact details prominently displayed on website. The officer must act upon any complaint within 36 hours and close it in a month’s time.
- End-to-end encryption e-PPIs shall ensure that end-to-end encryption is applied to safeguard the data exchanged. It shall retain data relating to electronic payments only till necessary.
- CERT-In’s responsibility: CERT-In (Indian Computer Emergency Response Team) shall notify the categories of incidents and breaches that are required to be reported to it mandatorily.
What are Prepaid Payment Instruments (PPIs)?
PPIs are methods that facilitate purchase of goods and services against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holder, by debit, by cash to a bank account or by credit card. These prepaid instruments can be issued as online wallets, mobile accounts, mobile wallets, smart cards, magnetic stripe cards, internet accounts, paper vouchers and any such instruments used to access the prepaid amount.