RBI/2010-11/341
DPSS.CO.OSD. No. 1445 /06.12.001/ 2010-2011

December 27, 2010

To

All Scheduled Commercial Banks / Authorised Payment System Operators

Dear Sir,

Issuance and operation of Prepaid Payment Instruments in India –
Auditor Certificate on the balances in Escrow account

Please refer to Para 7.3. of the policy Guidelines DPSS.CO.PD.No. 1873 /02.14.06/ 2008-09 dated April 27, 2009 for issuance and operation of Prepaid Payment Instruments in India.

2. It is observed that the authorised entities are not adhering to the prescribed time frame laid down for submission of Auditor’s certificate.  All authorised entities are advised to furnish a quarterly certificate on the balances held in the Escrow account in accordance with the above Guidelines, from an auditor within a fortnight from the end of the quarter to which it pertains.

3. These directions are issued under Section 6(1) of the Payment and Settlement Systems Regulations 2008 read with Section 12 of the Payment and Settlement Systems Act, 2007.

Yours faithfully

G. Srinivas
(General Manager)