The Reserve Bank of India (RBI) on August 27, 2021 has issued the Reserve Bank of India Master Directions on Prepaid Payment Instruments, 2021 (MD-PPIs, 2021). The provisions of MD-PPIs shall apply to all Prepaid Payment Instrument (PPI) Issuers and System Participants. The objects of the directions includes the following:
- To provide a framework for authorization, regulation and supervision of entities issuing and operating PPIs in the country;
- To foster competition and encourage innovation in this segment in a prudent manner while taking into account safety and security of systems and transactions along with customer protection and convenience; and
- To provide for harmonization and interoperability of PPIs.
