The RBI on Wednesday proposed several measures to develop a more conducive framework for the long-term growth of Prepaid Payment Instruments (PPIs), including enhanced transaction security and clearer rules on refunds and grievance redressal.
PPI is a payment instrument in which money is loaded and which facilitates subsequent transactions utilising the fund. These instruments are categorised as general purpose PPI, gift PPI, transit PPI, PPI for NRIs, besides certain other specific purpose PPI.
RBI said that as part of its continued efforts to develop a conducive framework for long-term growth of PPIs with enhanced security of transactions, a comprehensive review of the extant guidelines has been undertaken.
Accordingly, a draft Master Direction on Prepaid Payment Instruments was issued, and comments were invited by May 22, 2026.
A bank permitted by RBI to issue debit cards can issue PPIs, with prior intimation to the Department of Payment and Settlement Systems (DPSS), Central ..