The RBI on August 27, 2021 notified the Master Directions on Prepaid Payment Instruments applicable to Prepaid Payment Instrument (PPI) issuers and system participants.
The directions have been issued to update the existing framework for authorisation, regulation and supervision of entities operating PPIs and at the same time ensure competition and innovation in the sector, by increasing the scope of operations for non-bank PPI issuers, who are now allowed to issue full-KYC PPIs.
The directions stipulate the eligibility criteria for issuance of PPIs by banks, the authorization requirements for non-banks, restrictions on cross border transactions and requirements for achieving interoperability through UPI and card networks.
