Policy Guidelines on Pre-paid Payment Instruments in India
The Reserve Bank of India (RBI) has issued a master circular outlining policy guidelines for the issuance and operation of pre-paid payment instruments (PPIs) in India.
The guidelines aim to provide a framework for the issuance and operation of PPIs, ensuring safety and security of transactions, and preventing money laundering and terrorist financing.
The circular classifies PPIs into three categories: closed system, semi-closed system, and open system instruments, each with its own set of rules and regulations.
To issue PPIs, entities must meet certain eligibility criteria, including capital requirements and safeguards against money laundering.
The guidelines also outline the deployment of money collected, credits, and debits, as well as the issuance and reloading of PPIs, including their validity and transaction limits.
Additionally, the circular emphasizes the importance of fraud prevention and security standards, customer protection, and quarterly certification requirements.
The guidelines are applicable to all entities issuing PPIs in India, including banks and non-bank entities.
The RBI has consolidated previous guidelines and provided a comprehensive framework for the issuance and operation of PPIs in India.
Chat with the Master Circular: