Master Direction DPSS.CO.PD.No.1164/02.14.006/2017-18 October 11, 2017
All Prepaid Payment Instrument Issuers, System Providers and System Participants
Dear Sir / Madam,
Master Direction on Issuance and Operation of Prepaid Payment Instruments
Please refer to paragraph 16 of Statement on Developmental and Regulatory Policies regarding issuance of Master Direction on Prepaid Payment Instruments (PPIs) announced in the Fourth Bi-monthly Monetary Policy Statement, 2017-18 by the Reserve Bank of India (RBI).
2. The RBI has issued a number of circulars from time to time on issuance and operation of PPIs. In the light of developments in the field, progress made by PPI Issuers, experience gained and with a view to foster innovation and competition, ensure safety and security, customer protection, etc., it was decided to review the instructions relating to the issuance and operation of PPIs and issue comprehensive Directions on the subject.
3. The draft Master Direction on PPIs was placed on the RBI website on March 20, 2017 for public feedback. The comments / views received from all stakeholders have been examined by the Reserve Bank in preparation of the final Directions.
4. The Master Direction, issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007, replaces all circulars listed in Table-1 of Annex-1 and partially replaces all circulars mentioned in Table-2 of Annex-1 issued till date on the subject.
5. The Master Direction is effective from today. Existing PPI Issuers shall ensure compliance with the revised requirements on or before December 31, 2017, except where timelines have been specified in this Direction.
(Nanda S. Dave)
Chief General Manager-in-Charge