Prior written permission by Non-Bank entities
All non-bank entities being granted the Certificate of Authorization to issue PPIs in the country shall be required to take written approval from the Reserve Bank in the following cases:
- Any takeover or acquisition of control of non-bank entity, which may or may not result in change of management;
- Any change in the management of non-bank entity, which would result in change in more than 30 per cent of the directors, excluding independent directors. Prior approval shall not be required for those directors who get re-elected on retirement by rotation.
Deployment of money collected on PPIs
The amount of funds collected against the issuance of e-wallets at a point of time could be significant. Moreover, the revenue from funds may also be speedy. In case the settlement of funds is certain and in a timely manner, the confidence of the public and merchants, on the e-wallet system shall increase rapidly. To guarantee the timely settlement, the issuers shall invest the funds collected only as from the issuance of e-wallets as follow:
The banks shall keep the outstanding balance as a part of ‘net demand and time liabilities’ for maintaining the reserves in the Balance Sheet which shall be calculated on the basis of the balances appearing in the books of the bank as on the date of reporting to the RBI.
- Any other entity or persons issuing e-wallets shall keep reserved the outstanding balance in an escrow account with any scheduled bank by RBI subject to the satisfaction of following conditions: -
- The account shall be maintained with only one bank at one time;
- In case the aforesaid account is being shifted from one bank to another, it shall be kept in mind that the process in completed in a time-bound manner and without affecting the payment cycles;
- The balance lying in the account shall always be equal to or greater than the value of outstanding PPIs and payments due to merchants;
The amount lying in the account shall be used only for making payments to the partaking merchant establishments and other permitted payments.
Validity of PPIs License
All PPIs issued by the PPI issuers shall have a minimum validity of one year from the date of its issuance to the PPI holder. The PPI issuers shall intimate the users about the expiry of their PPIs in a timely manner by SMS / e-mail / post or by any other means in the language preferred by the holder indicated at the time of issuance of the PPI. Even if the PPI expires, a grace period of at least 60 days shall be given by the PPI issuer to the customer.