The Reserve Bank of India today released on its website for comments, an approach paper on guidelines for pre-paid payment instruments.

Pre-paid payment instruments as a means of payment has been gaining popularity in India. These instruments also come under the purview of the Payment and Settlement System Act. In order to ensure an orderly development and operations of this product, the Reserve Bank has proactively prepared the approach paper covering the various issues pertaining to the product.

Comments may be e-mailed or faxed to 022-22691557 or sent to Chief General Manager, Reserve Bank of India, Department of Payment and Settlement Systems, Central Office, 14th floor, Central Office Building, SBS Marg, Mumbai-400001 so as to reach latest by November 30, 2008.

The Payment and Settlement System Act 2007 came into effect from August 12, 2008. Consequently, all entities operating payment and settlement systems come under the regulatory preview of the Reserve Bank unless specifically exempted under the Act. Accordingly, all the existing entities, as also those proposing to set-up payment and settlement systems would require authorisation from the Reserve Bank of India. This process has already commenced.

Alpana Killawala
Chief General Manager

Press Release : 2008-2009/649