PPI Master Direction does not permit loading of PPIs from credit lines, clarifies RBI; non-compliance may attract penal action under the PSS Act, 2007

The Reserve Bank of India (RBI), in a recent clarification w.r.t. Paragraph 7.5 of the Master Direction on PPI (“PPI-MD), states that the PPI-MD does not permit loading of PPIs from credit lines.

If practiced, then it must be stopped immediately. Non-compliance in this regard may attract penal action under provisions of the Payment and Settlement Systems Act, 2007.

Please note that this information is not yet put up in the RBI site . We are reporting this basis news media.

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Paragraph 7.5 of the Master Direction states that “PPIs shall be permitted to be loaded / reloaded by cash, debit to a bank account, credit and debit cards, PPIs (as permitted from time to time) and other payment instruments issued by regulated entities in India and shall be in INR only”. With reference to this, the present clarification is issued.

Source: Reserve Bank of India