Neobank Jupiter receives RBI approval to issue prepaid payment instruments
These instruments enable users to conduct UPI payments and transfer up to Rs 2 lakh into their account.
Neobanking startup has received final approval from the Reserve Bank of India (RBI) to start issuing prepaid payment instruments (PPIs).
These instruments enable users to conduct UPI payments and transfer up to Rs 2 lakh into their account. They can be issued as smart cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers, and any other instrument that can be used to access the prepaid amount.
"PPI functionality today is almost equal to a bank account and has all the required facilities for a user to operate the account for most types of payments i.e. UPI payments and gift cards. Through PPI , we intend to increase our user base significantly wherein users want to use accounts only for UPI and similar transaction purposes and operate a safe and risk-free account," said Jitendra Gupta, Founder and CEO, Jupiter, in a statement.
“While we received in-principle approval from RBI last year, it is important for Jupiter to be fully compliant with all regulatory requirements. The final authorisation was received today,” he added.
PPI a powerful account to meet RBI's mission of driving financial inclusion in India and helps increase penetration of digital payments, said the company, in the statement.
Jupiter offers real-time spending insights and easy saving tools to help users manage their finances. Founded by fintech veteran Jitendra Gupta, Jupiter is backed by major investors including Matrix Partners, Sequoia Capital, Nubank, Tiger Global, Beenext, and Alteria Capital.
Jupiter raised Rs 100 crore in venture debt funding from Alteria Capital in January last year.
Edited by Swetha Kannan