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Business News/ Market / Stock-market-news/  RBI raises prepaid card limit to Rs1 lakh; gift card to be valid for 3 yrs
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RBI raises prepaid card limit to Rs1 lakh; gift card to be valid for 3 yrs

Banks have also been permitted to issue non-reloadable instruments in electronic form to foreign nationals or NRIs visiting India

A fully KYC-compliant individual can now load up to Rs1 lakh in a prepaid instrument and transfer funds from his account to a prepaid instrument issued to a family member, subject to a limit of Rs10,000 per cash-out and a ceiling of Rs25,000 per month. Photo: Pradeep Gaur/MintPremium
A fully KYC-compliant individual can now load up to Rs1 lakh in a prepaid instrument and transfer funds from his account to a prepaid instrument issued to a family member, subject to a limit of Rs10,000 per cash-out and a ceiling of Rs25,000 per month. Photo: Pradeep Gaur/Mint

Mumbai: The Reserve Bank of India (RBI) on Wednesday enhanced the maximum balance that can be made available in a prepaid instrument (PPI) to 1 lakh from 50,000.

The central bank also permitted gift cards with a validity of three years, up from the current one year. Also, two new card categories have been introduced; one, those issued to family members from fully know-your-customer (KYC) compliant bank accounts; and two, cards for visiting foreign nationals and non-resident Indians (NRIs).

PPIs include prepaid cards, mobile wallets, Internet wallets and paper vouchers. The norms for PPIs have been changed “based on a comprehensive internal review and the feedback received from the entities currently authorized to issue prepaid payment instruments," RBI said.

With the change in norms, a fully KYC-compliant individual can now load up to 1 lakh in a prepaid instrument. Additionally, such customers can transfer funds from their accounts to a prepaid instrument issued to a family member, subject to a limit of 10,000 per cash-out and a ceiling of 25,000 per month.

Banks have also been permitted to issue non-reloadable instruments in electronic form to foreign nationals or NRIs visiting India which could be co-branded with exchange houses and money transmitters approved by RBI.

“The cards can be issued by overseas branches of banks in India directly or by cobranding with the exchange houses/money transmitters upto a maximum amount of 2 lakhs by loading from a KYC compliant bank account," RBI said.

“Such PPIs should be activated by the bank only after the traveller arrives in India. Cash withdrawal from such PPIs will be restricted to 50,000/- per month. The cards should be issued strictly for use in India and transactions settled in rupees," RBI said adding that one individual can only hold one card at a time which has to be non-transferable.

Banks have to maintain a transaction history of the accounts and refund of un-utilised amount has to adhere to foreign exchange guidelines.

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Published: 03 Dec 2014, 06:37 PM IST
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