RBI amends the master direction on insurance and operation of PPIs

Sep 04, 2019 | by Avantis RegTech Legal Research Team

The Reserve Bank of India (RBI) on August 30, 2019, has issued a Notification in order to amend the master direction on insurance and operation of Prepaid Payment Instruments (PPIs). The amendment is made in Paragraph 9.1(i)(i) of the Master Direction on Issuance and Operation of PPIs issued vide Notification No. DPSS.CO.PD.No.1164/02.14.006/2017-18 dated October 11, 2017. The Paragraph 9 talks about a specific type of Semi-closed PPIs by bank and non-bank PPI Issuers. The Semi-closed PPIs issued by banks and non-banks would have all the features, unless the PPIs upto Rs. 10,000/- by accepting minimum details of the PPI holder.

RBI has advised that the timeline for conversion of minimum detail PPIs to KYC compliant PPIs has been extended from 18 months to 24 months from the date of issue of PPI, failing which no further credit shall be allowed in such PPIs. However, the PPI holder shall be allowed to use the balance available in the PPI. 

[RBI Notification No. DPSS.CO.PD.No.499/02.14.006/2019-20]


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