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ARTICLE · 31 AUGUST 2017

RBI Proposes Higher Net Worth, KYC And Other Changes For Issuers Of Prepaid Payment Instruments

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The Indian e-commerce boom coupled with the recent demonetization drive by the Indian Government has put the online payment systems to the forefront as a means of easy e-payments.

IndiaFinance and Banking
Seema Jhingan
Seema Jhingan
Neha Yadav
Neha Yadav
Sudipto Mitra
Sudipto Mitra
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The Indian e-commerce boom coupled with the recent demonetization drive by the Indian Government has put the online payment systems to the forefront as a means of easy e-payments. While cash continues to be the predominant and most preferred mode of payment, the prepaid payment instruments ("PPIs") such as e-wallets etc. are growing in popularity. As a consequence, the Reserve Bank of India has re-assessed the extant regulations as applicable to the PPIs to make the non-cash payment modes safe, secure and KYC compliant for better risk mitigation and customer protection.

Accordingly, RBI had earlier this year on March 20, 2017, issued draft master directions on 'All Prepaid Payment Instrument Issuers, System Providers, System Participants and all prospective Prepaid Payment Instrument Issuers', ("Draft Master Directions"), for public comments, by incorporating all instructions/guidelines issued so far along with certain significant amendments to the extant regulations.

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