New Delhi, April 25 (IANS). The Reserve Bank of India (RBI) has issued a draft ‘Master Direction’ on Prepaid Payment Instruments (PPIs) with the aim of enhancing security, customer protection and operational clarity for digital wallets and prepaid cards.
According to reports, under the RBI draft, debit card issuing banks will be able to issue PPIs (pre-paid instruments) after providing information to the ‘Department of Payment and Settlement Systems’ (DPSS).
“Any non-banking applicant must have a minimum net-worth of Rs 5 crore, and must submit a certificate from its statutory auditor,” the draft says.
The central bank has sought suggestions from the general public on this proposal till May 22, 2026. Additionally, any non-banking PPI issuer will have to increase its minimum net-worth to Rs 15 crore by the end of the third financial year of approval.
The proposal also makes it mandatory for non-banking PPI issuers to keep the amount deposited against PPI issuance in a separate ‘Rupee Escrow Account’ opened with a commercial bank in India.
Under the proposed limits, a maximum of Rs 2 lakh can be deposited in general purpose PPIs, with a monthly cash deposit limit of Rs 10,000.
The draft states that the maximum limit for such PPIs can be up to Rs 10,000, and in the case of ‘transit PPIs’, the limit can be up to Rs 3,000.
“Deposits in such PPIs will be permitted only if foreign exchange is received in exchange for cash or any other means of payment. The total amount withdrawn from such PPIs in any month will not exceed Rs 5 lakh,” the RBI draft said.
As per the draft, it is mandatory for PPI issuers to clearly inform the users about all its features, associated charges, validity period and terms and conditions while issuing the PPI. This information should be given in simple language, and preferably in English, Hindi and the local language.
In case the transaction is unsuccessful, the amount is returned, the transaction is canceled or rejected, the amount should be immediately credited back (refund) to the concerned PPI account; Even if doing so violates the limits prescribed for that particular PPI category.
–IANS
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