Reserve Bank of India allows banks to use RuPay Prepaid Forex cards

In order to expand payment options for Indians traveling abroad, the Reserve Bank has decided to allow issuance of RuPay Prepaid Forex cards by banks in India for use at ATMs, PoS machines, and online merchants overseas.

Governor Shaktikant Das announced some additional measures after informing decisions of Monetary Policy Committee. Shaktikant Das informed that the scope and reach of e-Rupi vouchers are proposed to expand by permitting nonbank prepaid payment instruments issuers to issue e- Rupi vouchers. It will enable to issue e- Rupi vouchers on behalf of individuals and simplify the process.

He said that RBI has decided to issue guidelines on Default Loss Guarantee arrangements in Digital Lending to further promote responsible innovation and prudent risk management. The regulatory framework for Digital Lending was issued in August and September 2022. 

He said that the guidelines will further facilitate the orderly



development of the digital lending ecosystem and enhance credit penetration in the economy. He informed that it has been decided to extend the timelines for achieving the priority sector lending(PSL) targets for UCBs by two more years up to March 2026 as a number of UCBs have met the required targets as of March 2023, He added that UCBs which have met targets as on March 31, 2023, shall be suitably incentivized.

It was also decided to rationalize and simplify the licensing framework for Authorised Persons (APs) under Foreign Exchange Management Act (FEMA), 1999 to effectively meet the emerging requirements of the rapidly growing Indian economy while considering the liberalization under FEMA.

To further enhance the efficiency of the Bharat Bill Payment System BBPS and to encourage greater participation, it was proposed to streamline the process flow of transactions and membership criteria for operating units.