RBI panel proposes extending deposit insurance to prepaid instruments

Reserve Bank of India (RBI)’s Committee for Review of Customer Service Standards has proposed a slew of initiatives including a centralised database of KYC documents and a common portal for lodging and tracking complaints

The committee has also suggested extending the Deposit Insurance and Credit Guarantee Scheme to PPIs (prepaid payment instruments), as money in PPI wallets is in the nature of deposits and PPI issuers are also regulated by the RBI.

“The RBI may examine whether Deposit Insurance and Credit Guarantee Corporation (DICGC) cover can be extended to bank PPIs and later to non-bank PPIs based on experience gained,” the committee said in its report.