October 01, 2012
All System Providers, System Participants
and all other prospective prepaid payment instrument issuers
Policy Guidelines for issuance and operation of Prepaid Payment Instruments in India- Amendments
A reference is invited to our circulars RBI/2008-09/458 DPSS. CO. PD. No. 1873/02.14.06/2008-09 dated April 27, 2009; RBI/2009-10/123 DPSS.CO.PD.No.344/02.14.06/2009-10 dated August 14, 2009; RBI / 2010-11 / 261 DPSS. CO. No. 1041/02.14.006/2010-2011 dated November 04, 2010; RBI/2010-11/289 DPSS.CO.AD.No.780/02.27.004/2010-11 dated November 24, 2010; RBI/2010-11/341 DPSS.CO.OSD.No.1445/06.12.001/2010-11 dated December 27, 2010; RBI/2010-11/444 DPSS No.2174/02.14.004/2010-11 dated March 23, 2011; RBI/2010-11/512 DPSS.CO.No.2501/02.14.06/2010-11 dated May 4, 2011; RBI / 2011-12 / 144 DPSS. CO. PD. No. 225/02.14.006/2011-12 dated August 04, 2011, RBI/2011-12/601 DPSS.CO.PD. No. 2256 /02.14.006/ 2011-12 dated June 14, 2012 on the captioned subject.
2. Attention is also invited to our guidelines RBI/2011-12/213 DPSS.PD.CO.No.62/02.27.019/2011-2012 dated October 05, 2011 issued on Domestic Money Transfer-Relaxations.
3. On a review the Reserve Bank has considered it necessary to carry out the following amendments:
A. Rationalisation in the categorisation and value limits of PPIs
The five categories of semi-closed PPIs as indicated in our previous guidelines have been replaced with three broad categories as under:
B. Strengthening Escrow management
C. Domestic Money Transfer relaxations
In terms of the guidelines dated October 05, 2011,domestic fund transfer is permissible: (i) from a prepaid payment instrument to another prepaid payment instrument issued by the same issuer; and (ii) from a prepaid payment instrument issued with full KYC to a bank account up to Rs 5000/- with a monthly ceiling of Rs 25,000/- per remitter. In view of the amendments indicated at Para 3A above, it has been decided that all the three categories of prepaid payment instruments mentioned therein will now qualify for domestic money transfer. The other conditions as indicated in the guidelines dated October 05, 2011 will continue to prevail.
4. This directive is issued under section 18, of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and comes into effect from the date of issue.
5. Please acknowledge receipt.
Chief General Manager