Current · Source: Reserve Bank of India · RBI/2013-14/547 · issued 28 Mar 2014 · ~2 min read
Quick answerRBI issued consolidated guidelines for prepaid payment instruments (PPIs) on March 28, 2014, superseding all earlier circulars. The rules cover issuance by banks and non-banks, co-branded cards, gift instruments, and cross-border remittance PPIs, aiming to streamline regulation under the Payment and Settlement Systems Act.
The rule, in the simplest words
Banks and non-banks must follow a unified regulatory framework for prepaid payment instruments.
All prepaid payment instruments, including co-branded cards and gift instruments, must comply with the new guidelines.
Lenders must update their internal policies to align with the consolidated guidelines and train their compliance teams.
How it plays out — a real example
Rahul, a prepaid payment instrument officer at a bank in Mumbai, ensured that all their co-branded cards and gift instruments were updated to comply with the new guidelines. He also trained his team on the changes and verified that their cross-border inward remittance PPIs met the specified conditions. This helped the bank avoid regulatory gaps and maintain a smooth operation.
What changed
RBI consolidated all previous instructions on prepaid payment instruments into a single circular, superseding earlier circulars. The revised guidelines were developed in consultation with stakeholders to address developments in the PPI segment. They cover general and specific PPI types, including co-branded cards, gift instruments, and those for government or cross-border remittance purposes.
What it means for you
Banks and non-bank PPI issuers now have a unified regulatory framework, reducing confusion from multiple circulars. This consolidation simplifies compliance and clarifies permissible PPI types, including co-branded and gift instruments. Lenders must align their PPI products with these revised guidelines to avoid regulatory gaps.
What you must do
Review and update internal PPI policies to align with the consolidated guidelines.
Ensure all PPI products (co-branded cards, gift instruments, etc.) comply with the new framework.
Train compliance teams on the supersession of earlier circulars and the single reference document.
Verify that PPI issuance for government, corporate, or cross-border remittance purposes meets specified conditions.
Who it affects
All banks issuing prepaid payment instruments, Non-bank PPI issuers and system providers, Entities offering co-branded cards or gift instruments, Banks handling cross-border inward remittance PPIs
❓ Common questions
Does this circular replace all earlier PPI guidelines?
Yes, this circular supersedes all earlier circulars on prepaid payment instruments, making it the single reference for PPI regulation.
What types of PPIs are covered under the consolidated guidelines?
The guidelines cover general PPIs, co-branded cards, prepaid gift instruments, PPIs issued to government or corporate entities, and those for cross-border inward remittances.
Who issued this circular and under what authority?
The circular was issued by RBI under Section 10(2) of the Payment and Settlement Systems Act, 2007, and signed by the Chief General Manager.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/547
DPSS.CO.PD.No.2074/02.14.006/2013-14
March 28, 2014
All Prepaid Payment Instrument Issuers, System Providers, System Participants
and all other Prospective Prepaid Payment Instrument Issuers
Madam / Dear Sir
Issuance and Operation of Pre-paid Payment Instruments in India – Consolidated Revised Policy Guidelines
To regulate the issue and operation of Pre-paid Payment Instruments, in exercise of the powers conferred under Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007) Reserve Bank of India had laid out the guidelines for issuance of prepaid instruments by banks and non-banks entities vide circular DPSS.CO.PD.No.1873/02.14.06/2008-09 dated April 27, 2009 . The instructions have been revised from time to time since then. The developments in the pre-paid payment instrument segment had necessitated a comprehensive review of guidelines issued so far. It was also desirable that all instructions on pre-paid payment instruments are made available at one place. Accordingly, the guidelines have been revised and consolidated in consultation with stake holders. The changes being introduced are given in Annex .
2. This Circular, issued under Section 10(2) of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007) contains guidelines on the general type of pre-paid payment instruments that can be issued by banks and non-bank entities, as well as guidelines on specific types of pre-paid payment instruments that have been permitted for issuance, such as, co-branded cards, pre-paid gift instruments, pre-paid instruments issued by banks to government organisations / financial institutions / corporate for specific purposes, as well as pre-paid instruments issued by banks for crediting cross border inward remittances.
3. Reference is also made to our guidelines on Domestic Money Transfer-Relaxations issued vide our circular RBI/2011-12/213 DPSS.PD.CO.No.62/02.27.019/2011-2012 dated October 05, 2011 where relevant.
4. This Circular supersedes all the earlier circulars issued on the subject.
Yours faithfully,
(Vijay Chugh)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/547 · issued 28 Mar 2014. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All banks issuing prepaid payment instruments, Non-bank PPI issuers and system providers, Entities offering co-branded cards or gift instruments, Banks handling cross-border inward remittance PPIs), your first concrete step on “RBI Consolidates Prepaid Payment Instrument Guidelines” is: “Review and update internal PPI policies to align with the consolidated guidelines.” (RBI issued this 28 Mar 2014).
Action required: Review and update internal PPI policies to align with the consolidated guidelines.
Action required: Ensure all PPI products (co-branded cards, gift instruments, etc.) comply with the new framework.
Action required: Train compliance teams on the supersession of earlier circulars and the single reference document.
Action required: Verify that PPI issuance for government, corporate, or cross-border remittance purposes meets specified conditions.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8814&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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