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ARTICLE · 18 MAY 2026

Holding All The Cards: RBI Issues Draft Prepaid Payment Instruments Directions

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On 22 April 2026, the Reserve Bank of India (RBI) issued the Draft RBI (Prepaid Payment Instruments) Directions, 2026 (Draft PPI Directions). Released following a comprehensive review of the extant Master Directions on Prepaid Payment Instruments, 2021 (PPI MD), the Draft PPI Directions aim to promote the security of prepaid payment instruments (PPIs) in India, with tighter controls on their issuance, features and monthly transfer limits.

IndiaFinance and Banking
Prashanth Ramdas
Prashanth Ramdas
Akshay Ferdinand
Akshay Ferdinand
Ananya Giri
Ananya Giri
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Introduction

On 22 April 2026, the Reserve Bank of India (RBI) issued the Draft RBI (Prepaid Payment Instruments) Directions, 2026 (Draft PPI Directions). Released following a comprehensive review of the extant Master Directions on Prepaid Payment Instruments, 2021 (PPI MD), the Draft PPI Directions aim to promote the security of prepaid payment instruments (PPIs) in India, with tighter controls on their issuance, features and monthly transfer limits.

Feedback on the Draft PPI Directions may be submitted by regulated entities, the public and other stakeholders until 22 May 2026. We have set out below the key changes proposed to be introduced.

Key Changes introduced in the Draft PPI Directions

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