Norms for prepaid payment instruments modified
The Reserve Bank of India (RBI) made changes to guidelines to pre-paid payment instruments. Some of the changes include increasing the minimum paid-up capital to Rs 500 lakh from Rs 100 lakh and having a minimum positive net worth of Rs 100 lakh at all the times. The RBI also said that the escrow balance for prepaid instrument issuers must be necessarily maintained with only one scheduled commercial bank at any point of time. The migration from one bank to another, in case of need, should be completed in the minimum possible time and with the prior approval of RBI.