Dated: November 22, 2016
All Prepaid Payment Instrument Issuers,
System Providers, System Participants
and all other Prospective Prepaid Payment Instrument Issuers
Dear Madam / Sir,
Special measures to incentivise Electronic Payments –
(i) Enhancement in issuance limits for Pre-Paid Payment Instruments (PPIs) in India
(ii) Special measures for merchants
Following the withdrawal of legal tender characteristics of existing ₹ 500/- and ₹ 1000/- Bank Notes (Specified Bank Notes – SBN), in order to facilitate the adoption of digital payments, it has been considered necessary to introduce the following special measures in partial modification of Master Circular DPSS.CO.PD.PPI.No.01/02.14.006/2016-17 dated July 01, 2016 on Issuance and Operation of Pre-paid Payment Instruments in India.
(i) Enhancement in PPI limits:
(ii) Special dispensation for merchants:
As per the extant PPI guidelines, merchants are defined as establishments who accept the PPIs issued by PPI issuer against the sale of goods and services. As a special dispensation for small merchants, PPI issuers can now issue PPIs to such merchants subject to the following:
2. The above measures shall come into effect from the date of this circular and shall be applicable till December 30, 2016, subject to review.
3. The directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).
(Nanda S Dave)
Chief General Manager