Transcorp gets in-principle nod from RBI to launch PPI service

NEW DELHI: Money transfer firm Transcorp International Ltd today said it has received in-principle approval from the RBI for providing semi-closed pre-paid payment instruments service.

Semi-closed pre-paid payment Instruments (PPI) are those which can be used for purchase of goods and services, including financial services at a group of merchant establishments which have a specific contract with the issuer to accept the payment instruments.

These instruments do not permit cash withdrawal or redemption by the holder.

Post getting final approval from the RBI, the company will be able to issue and operate the payment instruments and create the payment wallets including mobile wallets, Transcorp International said in a filing to the BSE.

"Post final authorisation, the company will be able to enhance the business opportunities in new areas," Transcorp International COO Himanshu Gupta said.

Transcorp is one of the leading principal agents of Western Union, having presence in more than 40 locations and a franchisee network of more than 7,500 throughout the country.