Like Paytm and Amazon, now Bajaj Finance is also going to jump into the prepaid payment business. Bajaj Finance has received its approval from the Reserve Bank of India. Very soon the company will launch Bajaj Pay which will work like Google Pay, Paytm, and Amazon Pay.
RBI approval to keep a wallet for Bajaj Finance is permanent, which means that the company will no longer need to get approval from RBI every year, as was required earlier. Bajaj Finance's digital wallet consumer is part of NBFC's larger plan to expand its digital finance offerings. To expand into the payment market, the company is rolling out 'Bajaj Pay' in different stages.
According to the company's Quarterly presentation, the Bharat Bill Pay system went live on Bajaj Pay in January. As such, a fully functional UPI payment option is expected to be available in May. The company announced last week that its consolidated profit for FY 2021 increased from Rs 948 crore in FY15 to Rs 1,347 crore in FY15.
Fund transfer and financial works can also be done with the help of PPI. However, its limit will be the same as the value in your payment instrument. A prepaid payment instrument can be a kind of payment wallet. Apart from this, it can be in the form of a smart card, magnetic chip, voucher, mobile wallet. In this, cash, debit card, credit card, value can be transferred from any other PPI.
Closed System PPI - This PPI does not allow you to withdraw cash or transfer third-party funds. You can use this system for the payment of goods and services and that too for anyone merchant.
Semi-Closed System PPI - With this help, you can pay multiple merchants. However, cash withdrawal is also prohibited in this case. For PPIs up to Rs 10,000, you will need KYC. On the other hand, if you go up to 1,00,000, then you will have to complete all the KYC formulations.