RBI Grade BNABARD ESISEBI
In one line
Context:
Gift Prepaid Payment Instruments (PPIs) for Mutual Funds
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
- Regulator: Securities and Exchange Board of India
- Why in News: Consultation paper released (March 2026)
- Focus: Allow gifting of mutual fund investments via prepaid instruments
What is the Proposal?
SEBI has proposed allowing Gift Prepaid Payment Instruments (PPIs), which can be purchased by an individual and gifted to another person, who can then use them to invest in mutual fund units.
Why is it Important?
- Promotes financial inclusion
- Encourages first-time investors
- Makes investing a social and accessible activity
- Supports deepening of capital markets
Key Features
- Gift PPIs can be used only for mutual fund investments
- Funded via:
- Bank transfer
- UPI (Indian accounts only)
- Validity: 1 year from issuance
- Investment Cap: ₹50,000 per investor per financial year
- Applicable only after KYC compliance of recipient
DATA POINTS
- Investment Cap: ₹50,000/year
- Validity: 1 year
- Mode: UPI / Bank Transfer only
- Instrument Type: Gift PPI
- Regulator: SEBI
Important For?
- UPSC Prelims (Economy, Financial Markets)
- UPSC Mains GS Paper 3 (Capital Markets, Financial Inclusion)
- RBI Grade B
- SEBI Grade A
- Banking Exams
MCQs
Q.1) Gift PPIs are proposed by:
[1] RBI
[2] SEBI
[3] NABARD
[4] IRDAI
[5] Finance Ministry
Answer: [2]
Q.2) Gift PPIs can be used for:
[1] Any purchase
[2] Mutual fund investments only
[3] Loan repayment
[4] Insurance premium
[5] Tax payment
Answer: [2]
Q.3) Maximum investment allowed via Gift PPIs is:
[1] ₹10,000
[2] ₹25,000
[3] ₹50,000
[4] ₹1,00,000
[5] No limit
Answer: [3]
Q.4) Validity of Gift PPIs is:
[1] 6 months
[2] 1 year
[3] 2 years
[4] 5 years
[5] Unlimited
Answer: [2]
Q.5) Which is mandatory for recipient?
[1] PAN only
[2] Aadhaar only
[3] KYC compliance
[4] Bank account abroad
[5] GST registration
Answer: [3]
