8. Cross-Border Transactions

The use of INR denominated PPIs for cross border transactions shall not be permitted except as under:

8.1 PPIs for cross-border outward transactions

a) KYC compliant reloadable semi-closed and open system PPIs issued by banks having AD-I licence shall be permitted to be used in cross-border outward transactions (only for permissible current account transactions under FEMA viz. purchase of goods and services), subject to adherence to extant norms governing such transactions.

b) PPIs shall not be used for any cross-border outward fund transfer and/or for making remittances under the Liberalised Remittance Scheme. Prefunding of online merchant’s account shall not be permitted using such Rupee denominated PPIs.

c) Issuers shall enable the facility of cross-border outward transactions only on explicit request of the PPI holders and shall apply a per transaction limit not exceeding Rs.10,000/-, while per month limit shall not exceed Rs. 50,000/- for such cross- border transactions.

d) In case this facility is made available by issuing the PPI in card form, then this PPI shall be EMV Chip and PIN compliant.

e) Such PPIs need not be issued as a separate category of PPI.

8.2 PPIs for credit towards cross-border inward remittance

a) Bank and non-bank PPI issuers, who have been appointed as the Indian agent of the authorised overseas principal, shall be permitted to issue PPIs to beneficiaries of inward remittance under the Money Transfer Service Scheme (MTSS) of the RBI.

b) Authorised non-bank PPI issuers shall be permitted to issue such PPIs for a period of three years, from the date of this Master Direction, subject to review.

c) The PPIs shall be KYC compliant, reloadable and issued only in electronic form, including cards.

d) Such PPIs shall be issued in adherence to extant norms under the MTSS Guidelines issued by Foreign Exchange Department, RBI.

e) Amounts only upto Rs.50,000/- from individual inward MTSS remittance shall be permitted to be loaded / reloaded in PPIs issued to beneficiaries. Amount in excess of Rs.50,000/- under MTSS shall be paid by credit to a bank account of the beneficiary. Full details of the transactions shall be maintained on record for scrutiny.

f) The roles and responsibilities of the PPI issuers for the PPI related activities shall be distinct from the roles and responsibilities as Indian Agents under MTSS.

g) Such PPIs need not be issued as a separate category of PPI.

8.3 Foreign Exchange PPIs:

Entities authorized under the Foreign Exchange Management Act (FEMA) to issue foreign exchange denominated PPIs are outside the purview of this Master Direction.