Key Provisions
The Master Direction outlines the guidelines for issuance and operation of Prepaid Payment Instruments (PPIs) in India.
Eligibility and Authorization
Entities eligible to issue semi-closed and open system PPIs must meet capital and other requirements. The authorization process involves submission of an application to the Reserve Bank of India.
Safeguards against Money Laundering
PPI issuers must comply with Know Your Customer (KYC), Anti-Money Laundering (AML), and Combating the Financing of Terrorism (CFT) provisions.
Issuance and Operation of PPIs
PPIs can be issued under co-branding arrangements, and prepaid meal instruments are permitted. Cross-border transactions are allowed under certain conditions.
Types of PPIs
There are three types of semi-closed PPIs: (i) up to Rs. 10,000/- with minimum details, (ii) up to Rs. 1,00,000/- after KYC, and (iii) up to Rs. 10,000/- with loading only from bank accounts. Open system PPIs require KYC completion.
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