The Reserve Bank of India (“RBI”), through a notification dated 16th January, 2020, has updated the Master Direction on Issuance and Operation of Prepaid Payment Instruments and included credit cards as a mode of payment for both reloading prepaid payment instruments (“PPI”) and for issuance of prepaid gift instruments (“PGI”), effective 16th January, 2020.
Hence, going forward, the bank and non-bank PPI issuers have to ensure the following:
- PPIs up to Rs. 10,000 which can only be issued after obtaining minimum details of the PPI holder (mobile number verified with One Time Pin and a self-declaration of name and unique identity/identification number of any officially valid document), must be loadable/reloadable via bank account must now be loadable/reloadable via both bank account and/or credit card.
- Banks and non-bank PPI issuers, before issuing a PGI, had to ensure that a Know Your Customer (“KYC”) details of the customers is maintained before issuing such PGI. However, KYC was not mandatory for issuing PGI, if the PGI were issued against debit to their bank accounts. Now, KYC will also be not mandatory for PGIs issued against credit cards.
Source: Reserve Bank of India
