From CFO By Vincent Ryan September 23, 2014 In July, small business and middle market lender...
Policy Guidelines for Issuance and Operation of Prepaid Payment Instruments in India
(enacted in 2009)
The Policy Guidelines for Issuance and Operation of Prepaid Payment Instruments in India (DPSS.CO.PD.No.1873/02.14.06/2008-2009) issued in April 2009 by the Reserve Bank of India attempt to ensure the orderly development and operations of prepaid payment instruments.
The guidelines are structured as follows:
- Capital requirements;
- Safeguards against money laundering (KYC/AML/CFT) provisions;
- Deployment of money collected;
- Issuance and reloading of pre-paid payment instruments;
- Fraud prevention and security standards; and
- Customer protection issue.
In August of 2009, these guidelines were amended by DPSS.CO.PD.No.344/02.14.06/ 2009-10, allowing âOther Personsâ to issue mobile phone based semi-closed system pre-paid payment instruments and placing certain restrictions on them. This circular is appended in the attached.