December 03, 2014
All Prepaid Payment Instrument Issuers,
System Providers, System Participants
and all other Prospective Prepaid Payment
Madam / Dear Sir
Issuance and Operation of Pre-paid Payment Instruments (PPIs) in India- Relaxations
A reference is invited to the circular issued vide RBI/2014-2015/105 DPSS.CO.PD.PPI.No. 3/02.14.006/2014-15 July 1, 2014 on the Master Circular – Policy Guidelines on Issuance and Operation of Pre-paid Payment Instruments in India.
2. Based on a comprehensive internal review and the feedback received from the entities currently authorized to issue prepaid payment instruments, it has been considered necessary to amend certain provisions of the existing guidelines/issue additional guidelines for ensuring growth of the prepaid payment industry.
3. Amendments to existing guidelines
3.1 PPIs issued with full KYC- enhanced value
Attention is invited to Para 7.1 of the aforesaid guidelines wherein it was stated that the maximum value of any pre-paid payment instruments (where specific limits have not been prescribed including the amount transferred as per paragraph 10.2) shall not exceed Rs. 50,000/-. Para 7.2 of the guidelines highlighted that the following types of semi closed pre-paid payment instruments can be issued on carrying out Customer Due Diligence as detailed below:-
The limit of PPI that can be issued under Para 7.2 (iii) has now been enhanced from Rs. 50,000 to Rs.1,00,000/- The balance in the PPI should not exceed Rs. 1,00,000/- at any point of time.
3.2 Gift Cards
The maximum validity of the gift cards has been enhanced from one year to three years. Other provisions of PPI guidelines with respect to Gift Cards will continue to be applicable.
4. Additional guidelines – introduction of new categories of PPIs issued by banks
4.1 Issue of multiple PPIs by banks from fully-KYC compliant bank accounts for dependent/family members
It has been decided to introduce a new category of open system prepaid payment instrument subject to following conditions:
4.2 Rupee denominated PPIs issued by banks for visiting foreign nationals and NRIs
Banks are permitted to issue open system rupee denominated non-reloadable (a) PPIs to NRIs and foreign nationals visiting India & (b) PPIs co-branded with exchange houses/money transmitters (approved by RBI) to NRIs and foreign nationals visiting India subject to the following conditions:
5. The above changes will come into effect from the date of issue of circular. The other provisions of Master Circular dated July 1, 2014 will remain unchanged.
6. This directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007 (Act 51 of 2007).
Principal Chief General Manager