All Prepaid Payment Instrument
System Providers, System Participants and
all other Prospective Prepaid Payment Instrument Issuers
Dear Madam / Sir,
Master Circular on Issuance and
Operations of Prepaid Payment Instruments – Amendments to paragraph 7.9
A reference is invited to paragraph
7.9 of our Master circular DPSS.PD.CO.PPI.No.01/02.14.006/2016-17
dated July 01, 2016 on Issuance and Operations of Prepaid Payment
Instrument (PPIs) in India.
2. In order to facilitate
greater adoption of digital payments, the instructions contained in
paragraph 7.9 of the above circular have been partially modified as under:
may extend the provisions of paragraph 7.9 of Master Circular on
PPIs dated July 01, 2016 to include other entities / ‘employers’ such as
unlisted corporates / partnership firms / sole proprietorship / public
organizations like municipal corporations, urban local bodies, etc.
(employers) for onward issuance to their staff / employees / contract
shall extend this facility only to those entities / ‘employers’ that have a
bank account with them and after obtaining an undertaking that they are not
availing of this facility from any other bank.
of the identity of the staff / employees / contract workers, etc. shall be
the responsibility of the concerned ‘employer’. The bank should put in
place proper systems to capture and maintain details of the employees to
whom the cards are issued by the ‘employer’ along with copies of photograph
and identity proof of such employees. The ‘employer’ is also required to
make available details of bank accounts (if any) of the employees to the
shall load/reload PPIs after obtaining necessary authorisation and above
mentioned details of the employees/staff/contract workers, etc. from the
instructions of paragraph 7.9 (d), (e), (f) and (g) continue to be
3. The above changes shall come
into effect from the date of this circular.
4. The directive is issued under
Section 10(2) read with Section 18 of Payment and Settlement Systems Act,
2007 (Act 51 of 2007).