RBI Grants PPI Authorisation To Eroute Technologies

The Reserve Bank of India (RBI) has authorised Eroute Technologies approval to operate as a PPI (prepaid payment instruments) company.

The company said in a statement on Wednesday, “The RBI granted Eroute Technologies Pvt Ltd permanent approval to initiate issuance and operational activities of semi-closed pre-paid instruments in the country on May 10, 2021.”

The Noida-based company claims that the RBI approval will allow it to introduce its payment solutions independently, unlike other banks such neo banks, other bank-led fintech firms, etc.

PPIs are instruments that enable the exchange of goods and services, such as funds transfers, remittances, and financial services in exchange for the value stored in such instruments.

According to the company, it intends to facilitate the underserved segments, which total nearly 680 million individuals, by developing user-friendly payment solutions that meet the specific needs of various consumer segments in society.

The company also stated that it is actively pursuing co-branded payment solutions with consumer organisations.

Mr. Sanjeev Pandey, Eroute Technologies MD & CEO, said, “Amid the pandemic, digital payments have become absolutely essential for the government and people to overcome  -19 spread from individual to individual.' He stated that the company will put the emphasis on boosting payment experiences across segments of society by offering safe, secure, and credible payment solutions to complement the users' lifestyles.”

The fintech company is founded by Mr. Sanjeev Pandey, former group president, Yes Bank, Mr. Abhishek Saxena, an IIT-BHU alumnus, and Mr. Jason Ho, chairman of Taiwan-based Taisys Group.

In April 2021, the RBI enabled non-banking payment system operators of PPIs to become direct members of RTGS/ NEFT transactions, the RBI-operated centralised payment systems.

Furthermore, full-KYC PPIs such as wallets and prepaid cards have been made extensible, the outstanding balance in such instruments has been increased to Rs. 2 lakh (US$ 2.73 thousand), and cash withdrawals through ATMs and points of sale have been allowed.

According to Eroute, “This will bring non-bank issued PPIs almost on par with bank accounts, boosting digital financial inclusion and advancement to meet the needs of customers such as MSMEs, small traders, and merchants.”

The company's advisory board includes former SBI chairman Mr. A K Purwar, ex-RBI deputy governor, Mr. H R Khan, former government secretary, Mr. Vijay Chhibber, and ex-NPCI Product Management Head, Mr. Ram Rastogi.

According to the company, it has a full-fledged execution team with a track record of successfully integrating numerous payment systems in the country.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.