Prepaid Payment Instrument

FIG Paper No. 60 - COMPARATIVE ANALYSIS – Comparative Analysis – Master Direction On Prepaid Payment Instrument, 2021, And Draft Directions On Prepaid Payment Instrument, 2026

Summary: Continuing the overhaul exercise, RBI has released the draft master directions on PPI which proposes a significant change to the existing framework, aimed at simplifying classification, strengthening regulatory oversight, and curbing misuse of prepaid instruments. These reforms signal RBI’s intent to align the PPI ecosystem with evolving risk considerations while promoting a more streamlined framework.

Continue Reading FIG Paper No. 60 – Comparative Analysis – Master Direction On Prepaid Payment Instrument, 2021, And Draft Directions On Prepaid Payment Instrument, 2026
RBI FURTHER PIERCES THE WIRE TRANSER VEIL KYC Guidelines

In its constant endeavour to combat money laundering, terrorist financing, and financing of other illegal activities, the Reserve Bank of India (“RBI”) has, vide a letter dated May 4, 2023, amended the Master Directions on Know Your Customer, 2016 and instructed all banks, financial institutions and other Regulated Entities (“REs”) to comply with the newly added KYC norms for wire transfers (“RBI Instructions”). It is a known fact that money launderers across the world have been using wire transfers for long now, as a means to facilitate illegal acts, owing to less/ no regulatory scrutiny.

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