The Reserve Bank of India has released a Master Direction on Issuance and Operation of Prepaid Payment Instruments ("PPI") on October 11, 2017. The direction issued under Section 18 read with Section 10(2) of the Payment and Settlement Systems Act, 2007, shall be in supersession of all the previous circulars issued on the subject matter. The direction has been issued in the backdrop of developments in the field, progress made by PPI Issuers, experience gained and with a view to foster innovation and competition, to ensure safety and security, customer protection etc. In terms of the direction, existing PPI Issuers shall have to ensure compliance with the revised requirements on or before December 31, 2017, except where timelines have been specified in this direction.
This update is authored by Clasis Law, Clyde & Co's associated firm in India
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