Policy Guidelines for Issuance and Operation of Prepaid Payment Instruments in India

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:

  1. Introduction;
  2. Definitions;
  3. Eligibility;
  4. Exemption;
  5. Capital requirements;
  6. Safeguards against money laundering (KYC/AML/CFT) provisions;
  7. Deployment of money collected;
  8. Issuance and reloading of pre-paid payment instruments;
  9. Validity;
  10. Redemption;
  11. Fraud prevention and security standards; and
  12. Customer protection issue.

In August of 2009, these guidelines were amended by DPSS.CO.PD.No.344/02.14.06/ 2009-10, allowing “Other Persons” 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.