RBI/2010-11/512
DPSS.CO.No.2501/02.14.06/ 2010-11 May 4, 2011 All System Providers, System Participants
And Prospective prepaid Instrument Issuer Madam/ Dear Sir Policy Guidelines for issuance and operation of Prepaid Instruments in India. A reference is invited to Para 124 of the Monetary Policy statement (2011-2012) on the issue of mobile based semi-closed prepaid payment instruments. Attention is also invited to our circular RBI/2009-10/123- DPSS.PD.No.344/02.14.06/2009-2010 dated August 14, 2009 wherein an amendment to Paragraph 3.2 of the policy guidelines on the issue of prepaid instruments in India (RBI/2008-09/ 458, DPSS.CO.PD.No.1873 /02.14.06/ 2008-09 dated April 27, 2009), was carried out. 2. As per the amendment it was decided to permit Other Persons to issue mobile phone based semi-closed system pre-paid payment instruments (semi-closed m-wallets) complying with the above guidelines with the following conditions: -
The maximum value of such instruments shall not exceed ` 5000/-. -
The purchase/reloading of these instruments against the value of airtime/talktime shall not be permitted. -
This facility shall be enabled only to facilitate purchase of goods and services. Person-to-person transfer of value shall not be permitted 3.The position has been reviewed keeping in view the need to facilitate larger acceptance of mobile phone based prepaid payment instruments (M-wallets) as a mode of payment. Accordingly, it has now been decided to bring semi closed m-wallets on par with the other semi-closed prepaid instruments subject to the following conditions. -
The maximum value of such prepaid semi-closed m-wallet shall not exceed ` 50,000 as indicated in Para 6.3 of the above guidelines. -
The monetary ceilings on prepaid instruments issued based on customer due diligence as laid down in Para 6.4 of the extant guidelines would be applicable to such m-wallets. -
The conditions specified at Para 2(ii) & (iii) above will continue to be applicable to such semi-closed m-wallets. -
All other conditions specified in the “Policy guidelines for issuance and operation of prepaid instruments in India”would mutatis mutandis apply to such m-wallets. 5. The directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007). Yours faithfully G. Padmanabhan
Chief General Manager | |