Question

    Which of the following is not a type of Prepaid Payment Instrument (PPI)? 

    A Closed System Payment Instruments Correct Answer Incorrect Answer
    B Semi-Closed System Payment Instruments Correct Answer Incorrect Answer
    C Open System Payment Instruments Correct Answer Incorrect Answer
    D Semi-Open System Payment Instruments Correct Answer Incorrect Answer
    E All the above are types of PPI Correct Answer Incorrect Answer

    Solution

    Closed System Payment Instruments: These are payment instruments issued by a person for facilitating the purchase of goods and services from him/it. These instruments do not permit cash withdrawal or redemption. Semi-Closed System Payment Instruments: These are payment instruments which can be used for purchase of goods and services, including financial services at a group of clearly identified merchant locations/ establishments. These instruments do not permit cash withdrawal or redemption by the holder. Open System Payment Instruments: These are payment instruments which can be used for purchase of goods and services, including financial services like funds transfer at any card accepting merchant locations (point of sale terminals) and also permit cash withdrawal at ATMs / BCs.

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