The RBI (Reserve Bank of India) on recenlty allowed holders of prepaid payment cards, to deposit school & college fees and pay taxes in addition to buying rail & air tickets within the prescribed limit of Rs. 10,000.
The prepaid cards, which are convenient alternatives to cash & cheques, are mainly issued by banks and NBFCs (non-banking financial companies) on payment of specified amount and are used for purchasing goods & services.
These prepaid cards, which are technically known as 'semi closed prepaid instrument" can be loaded with a maximum value of Rs. 10,000 and may be used for payment of utility bills , essential services, air and train travel tickets, recurring payment of college fees, school fees, government taxes etc.
