The Reserve Bank of India (RBI) vide notification dated December 29, 2017 has issued Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPI). The provisions of the Master Direction shall apply to all PPI Issuers, System Providers and System Participants. This Master Direction is issued-
a) To provide a framework for authorisation, regulation and supervision of entities operating payment systems for issuance of PPIs in the country;
b) To foster competition and encourage innovation in this segment in a prudent manner while taking into account safety and security of transactions as well as systems along with customer protection and convenience.
c) To provide for harmonisation and interoperability of PPIs
[RBI/DPSS/2017-18/58 Master Direction DPSS.CO.PD.No.1164/02.14.006/2017-18]