MANU/RMIC/0163/2019

Ministry : Reserve Bank of India

Department/Board : Department of Payment and Settlement Systems

Circular No. : DPSS.CO.PD.No.1198/02.14.006/2019-2020
                   RBI/2019-2020/123

Date : 24.12.2019

Notification/ Circulars Referred : DPSS.CO.PD.No.1164/02.14.006/2017-18 dated October 11, 2017 MANU/RMIC/0137/2017

Citing Reference:
DPSS.CO.PD.No.1164/02.14.006/2017-18 dated October 11, 2017 MANU/RMIC/0137/2017  Referred

All Prepaid Payment Instrument Issuers

Madam / Dear Sir,

Introduction of a new type of semi-closed Prepaid Payment Instrument (PPI) - PPIs upto Rs. 10,000/- with loading only from bank account

Please refer to the Statement on Developmental and Regulatory Policies issued as part of Monetary Policy Statement dated December 5, 2019 as also the Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPI-MD) issued vide DPSS.CO.PD.No.1164/02.14.006/2017-18 dated October 11, 2017 (updated as on August 30, 2019).

2. To give impetus to small value digital payments and for enhanced user experience, it has been decided to introduce a new type of semi-closed PPI with the following features:

a. Such PPIs shall be issued by bank and non-bank PPI Issuers after obtaining minimum details of the PPI holder.

b. The minimum details shall necessarily include a mobile number verified with One Time Pin (OTP) and a self-declaration of name and unique identity / identification number of any 'mandatory document' or 'officially valid document' (OVD) listed in the 'Master Direction - Know Your Customer (KYC) Direction, 2016' issued by Department of Regulation, Reserve Bank of India, as amended from time to time.