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
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.