The Reserve Bank of India vide notification12 dated
January 04, 2019, reformed the area of unauthorized electronic
transactions in prepaid payment instruments (hereinafter referred
to as 'PPIs') by defining customer liability and bringing
all the customers to the same level with regard to electronic
transactions made by them via any non-bank. PPIs are the methods
such as internet account, wallets, mobile wallets, smart cards,
etc., wherein goods and services can be purchased against the value
pre-stored in such instruments. PPI mechanism was explained in
detail in our earlier article . 2
Transactions
The notification differentiates between two types of
transactions covered under the scope of the notification. Firstly,
remote online transaction which do not require physical PPIs to be
presented at the point of transactions and secondly proximity
payment transactions which require the physical PPIs such as cards
or mobile phones to be present at the point of
