RBI extends date to submit comments on prepaid instrument norms

The Reserve Bank of India has extended the time to send suggestions or comments on the regulation of prepaid instruments (PPIs) to April 15.

Prepaid instruments are online applications, vouchers or cards that facilitate purchase of goods and services against the value stored on such instruments.

On March 20, the RBI had placed on its website for public comments the draft directions on Master Directions on Issuance and Operation of PPIs including smart cards, mobile and electronic wallets such as Paytm, Mobikwik, ItzCash, meal voucher companies such as Sodexo and Ticket Restaurant among others. The comments and suggestions were to be sent by March 31.

The draft proposed to tighten operational guidelines for such PPIs by capping the upper limit of amount stored in them at Rs 1 lakh if the customer provides full KYC (know-your-customer) documentation. The amount is capped at Rs 20,000 if the customer provides minimum KYC details to the PPI issuing entity.

Depending on the specifications of each wallet – closed, semi-closed and open wallets – the limits on loading and fund transfer have been proposed.

Easing interoperability, PPIs could now be loaded/reloaded by other PPIs as well apart from the cash, by debit to a bank account, by credit and debit cards as available currently.

Cash loading to PPIs are proposed to be limited to Rs 50,000 per month subject to overall limit of the PPI where full KYC of a customer is obtained, the RBI said.

In case of PPIs with minimum KYC, this monthly limit would be set at Rs 20,000. For PPI accounts with electronic KYC like one-time passwords, the minimum limit has been set at Rs10,000.

Fresh applications for new entities to set up PPIs has been suspended till the release of final guidelines, which is likely to be on April 30, 2017.