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RBI Reporting Requirements and Compliances for Prepaid Payment Instruments (PPIs) in India
Prepaid Payment Instruments (PPIs) are tools that allow users to pay for goods, services, financial products, and remittance facilities using the value stored in them. This stored value represents the amount already paid by the holder through cash, debit from a bank account, or credit card.
PPIs can be issued by both banks and non-bank entities. Banks may issue them after obtaining RBI approval, while non-bank issuers must be Indian companies incorporated under the Companies Act, 1956/2013, and authorised by the RBI to operate a PPI payment system.
The RBI’s Master Directions prescribe the eligibility requirements and conditions for Payment System Operators (PSOs) managing PPIs in India. No entity is permitted to establish or operate a PPI payment system without prior approval or authorisation from the RBI.
ANNUAL/ QUARTERLY/ MONTHLY COMPLIANCE |
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|
Compliance/Report Type |
Frequency/Timeline |
Mode/Format |
|
Net-worth Certificate (Annual) |
Annually – within 6 months of FY end |
CA Certificate in Annex-2 format |
|
System Audit Report (SAR) |
Annually – within 2 months of FY end |
CERT-IN empanelled auditor report |
|
Cybersecurity Audit Report |
Annually – with SAR submission |
Technical audit by CERT-IN/ISO 27001 auditor |
|
PPI Customer Grievance Report |
Quarterly – by 10th of Apr/Jul/Oct/Jan |
PDF template (Annex-6) |
|
Escrow Account Certificate (Quarterly) |
Quarterly – within 15 days of quarter end |
Auditor certificate in Annex-5 format |
|
Monthly Transaction Data |
Monthly – within 15 days of month end |
|
EVENT BASED COMPLIANCE |
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|
Compliance/Report Type |
Frequency/Timeline |
Mode/Format |
|
Fraud Reporting |
|
Online/Email/FIU reporting format |
|
KYC/AML/CFT Compliance Monitoring |
Ongoing/Continuous |
Internal monitoring & RBI inspection |
|
Suspicious Transaction Reports (STR) |
As required – upon detecting suspicious activity |
FIU-India electronic format |
|
Certificate of Authorisation Renewal |
≥ 3 months before CoA expiry |
Written application |
|
Change in Management/Ownership Notification |
Within 15 days of change |
Letter to CGM, DPSS with Annex-3 |
|
Major System/Business Changes Notification |
Prior to event |
|
|
Board-Approved Policy Submissions |
At setup and on updates |
Formal document submission |
|
Interoperability Compliance Status |
As required by RBI |
Online/Written confirmation |
Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement.
