Master Directions on Prepaid Payment Instruments (PPIs)
The Reserve Bank of India has issued master directions for prepaid payment instruments (PPIs), outlining the eligibility requirements, authorization process, and operational guidelines for banks and non-banks.
Eligibility Requirements: Banks and non-banks must meet specific eligibility criteria, including capital requirements, to issue PPIs.
Authorization Process: Non-banks must obtain authorization from the RBI to issue PPIs, and must comply with safeguards against money laundering provisions.
Issuance and Loading: PPIs can be issued and loaded/reloaded with funds, with specific guidelines for co-branding arrangements and cross-border transactions.
Types of PPIs: There are several types of PPIs, including:
- Small PPIs (or Minimum-detail PPIs): with cash loading facility (up to Rs. 10,000) or without cash loading facility (up to Rs. 10,000)
- Full-KYC PPIs: requiring complete know-your-customer (KYC) norms
Specific Categories of PPIs: include:
- Gift PPIs: for gifting purposes
- PPIs for Mass Transit Systems (PPI-MTS): for use in mass transit systems
- PPIs to Foreign Nationals / Non-Resident Indians (NRIs) visiting India: for use by foreign nationals and NRIs visiting India
Chat with the Master Direction:
Download: Master Directions on Prepaid Payment Instruments (PPIs) (Updated as on February 23, 2024)