RBI soon to set norms for issuing prepaid mobile vouchers (India)

www.WirelessFederation.com/news: The Reserve Bank of India will soon introduce norms allowing bank and qualified non-banking entities to issue prepaid instruments like mobile vouchers and wallets that can be used to purchase goods and withdraw cash from ATMs. This move is driven by the comments it received on a draft proposal that sought to permit banks and eligible NBFCs (Non-Banking Financial Cos) to issue pre-paid vouchers up to Rs 50,000.

After the issuance of the guidelines, the banks and non-banking entities would be able to instruments such smart cards, magnetic strip cards, internet accounts, internet wallets, mobile accounts, mobile wallets and prepaid vouchers. The amount for these represents the value paid by the holder either in cash or through the debit/credit cards.” It is now proposed to permit SCB (scheduled commercial banks) which comply with eligibility criteria to issue all categories of prepaid instruments,” the RBI said.

Further RBI said, eligible non-bank entities, including NBFCs, have been permitted to issue semi-closed instruments which can be used to “purchase all types of goods and services at an identified network of establishments”.

The semi closed instruments comprises of those vouchers that can only be redeemed at identified establishments which had earlier entered into a contract with the issuer for honouring such instruments.

As regards the value, the draft guidelines issued by the RBI had said, “The maximum value of any prepaid payment instrument (where specific limits have not been prescribed) shall not exceed Rs 50,000.”