What Are Minimum Capital Requirements?
Banks- There is no separate minimum capital required in case of banks. They shall be authorized to issue PPIs only after getting approval from RBI.
Other Entities- A minimum positive net worth of 25 Crores as per the last audited balance sheet shall be maintained by all entities seeking approval.
What Are The Documents Required For Registration ?
-Name of the Applicant
-Constitution of Applicant
-Address proof of registered office
-Certificate of Incorporation
-Main business of company
-Statutory auditor of company
-Audited balance sheet
-Name and address of bankers of the company
-Any other documents as may be required
What Is The Validity Of PPI License ?
All PPIs is having minimum validity of at least One yea from the date of its issuance to the PPi holder. PPI issuers must inform about it expiry to its customers in a timely manner through SMS/Email/ post or by any other medium in the language preferred by the holder indicated at the time of issuance of the PPI. even if the PPi expires, a grace period of 60 days shall be given by the PPi issuer to the customers.
What Are The Other Conditions Related To Capital Requeirement ?
-Net worth shall consists of the following items-
-Paid-up equity capital
-Share premium account
-Capital reserves representing surplus
-In case of a newly incorporated company a certificate from their Chartered accountant regarding the current net worth along with the provisional Balance sheet is required to be submitted. Moreover, documents regarding capital infusion and other funds acquired to start the business shall also be submitted.
-In case of Banks and NBFC, the approval is given by the supervisory department of the RBI.
-The existing PPI issuers who obtained the license from RBI under previous capital requirements shall be liable to increase their net-worth in accordance with the present criteria by September 30,2020, failing which their License shall be cancelled.
-Only an entity who are duly incorporated under Companies Act, are authorized to apply for the License from RBI.
-The object clause of MOA of the applicant company shall specify the proposed activity of operating as a PPI issuer.