Q. With reference to Prepaid Payment instrument (PPI) consider the following statements::
1.These are financial instruments that facilitate the purchase of goods and services against the value stored on such instruments.
2.These payment instruments are licensed and regulated by the Reserve Bank of India.
3.Closed system PPI can be used only at specific locations and cannot be used to transfer funds from one account to another.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: D
Notes:

Statement 1, 2 and 3 are correct. PPI are financial instruments that facilitate the purchase of goods and services against the value stored on such instruments. These payment instruments are licensed and regulated by the Reserve Bank of India. Closed system PPI can be used only at specific locations and cannot be used to transfer funds from one account to another.

Source: ForumIAS