Prepaid Payment Instruments issued by Non-Banking Institutions - ربی - Reserve Bank of India
Prepaid Payment Instruments issued by Non-Banking Institutions
RBI/2013-14/461 January 24 , 2014 All Non Banking Financial Companies Dear Sirs, Prepaid Payment Instruments issued by Non-Banking Institutions Non–banking institutions (NBIs) are allowed to issue prepaid payment instruments (PPIs) and collect money in this behalf from the customers, subject to authorisation under the Payment and Settlement Systems Act (PSS Act), 2007. As this function involves providing payment service, and is regulated under the PSS Act by the Reserve Bank of India, it has been decided to exempt NBIs from the provisions of the Chapter lll B of the RBI Act, 1934, with respect to the money received by them for issue of PPIs. 2. Notification of date in this regard is enclosed. Yours faithfully, (N. S. Vishwanathan) RESERVE BANK OF INDIA Notification No.DNBS. 273 /PCGM (NSV)-2014 dated January 24 , 2014 The Reserve Bank of India, on being satisfied that it is necessary so to do, in exercise of its powers conferred by section 45 NC of the Reserve Bank of India Act, 1934 (2 of 1934) hereby declares that the provisions of Chapter lll B of that Act shall not apply to a non-banking institution which is authorised to operate a payment system and to issue prepaid payment instruments under the Payment and Settlement Systems Act, 2007 (51 of 2007). 2. This exemption shall be limited and restricted to money received by such non-banking institution for issue of prepaid payment instruments. (N. S. Vishwanathan) |