RBI released a draft circular!
(A circular is a compilation of several guidelines that RBI seeks to modify or introduce. A draft circular is one where RBI has proposed some changes and is seeking comments from the ecosystem)
Some of the key guidelines in the draft circular are:
PPI (Prepaid Instrument) issuers will have to maintain a networth of 25 crores while applying for a PPI license and will also have to maintain it annually as well.
All companies that issue PPI or prepaid cards and wallets. Most of these companies will now have to maintain a networth of 25 crores, 5 times over the current 5 crore requirement.
All non serious players who got the license earlier will now have to raise more capital and prove that they are serious or get out of this business. RBI has realised the importance of PPIs to the Indian financial system and hence allowing only serious players. New players have to comply immediately while existing players have time till , failing which they will not be allowed to run their business after the close of business on.
These have been split into two, > 20,000 (upto 1 lakh) and < 20,000
Earlier, wallets could be issued with minimum KYC (mobile no) to all wallets with less than 10,000 monthly balance and transaction value. RBI has now done away with the same and has introduced two limits.
- < 20,000
- > 20,000
For all wallets with balances less than 20,000 INR, can be opened with minimum customer details. Minimum details include verified mobile number, personal details and a unique no as provided by an official authority. The biggest change, however, is that RBI has mandated that these PPIs be converted to full KYC of opening or issuance.
For all wallets greater than 20,000 (upto 1 lakh), existing norms apply. These wallets will mandatorily have to be fully KYC-ed.
Say goodbye to all your paper based meal coupons or other vouchers because RBI has taken a pro- environment step. RBI has mandated that all PPIs convert to electronic format by the end of this calendar year.
Phew, those are quite a few changes that RBI has proposed and we havent even covered 15% of the changes proposed.