Pre-Paid Instrument
Pre-Paid Instrument
Powering Smooth Digital Transactions: Castler’s PPI Escrow Infrastructure
Powering Smooth Digital Transactions: Castler’s PPI Escrow Infrastructure
Powering Smooth Digital Transactions: Castler’s PPI Escrow Infrastructure
Castler enables PPI issuers to meet RBI’s escrow compliance with a secure, purpose-built framework for managing prepaid funds. Supporting wallets, cards, BNPL, and gifting platforms, the solution offers real-time reconciliation, seamless partner integration, and operational continuity. Designed for scale and regulatory precision, Castler simplifies fund flows across India’s growing prepaid ecosystem ensuring speed, control, and reliability
Castler enables PPI issuers to meet RBI’s escrow compliance with a secure, purpose-built framework for managing prepaid funds. Supporting wallets, cards, BNPL, and gifting platforms, the solution offers real-time reconciliation, seamless partner integration, and operational continuity. Designed for scale and regulatory precision, Castler simplifies fund flows across India’s growing prepaid ecosystem ensuring speed, control, and reliability
Castler helps PPI issuers stay RBI-compliant with secure fund flows, real-time reconciliation, and seamless integration.
Prepaid Payment Instruments (PPIs) are a convenient way for users to keep their money stored digitally and make purchases for various goods, services, remittances, and financial services. In India, PPIs are divided into three main categories:
Closed System PPIs
These can only be used within the issuer’s own ecosystem, like gift cards from a specific brand.
You can't make third-party payments or withdraw cash with these.
No approval from the RBI is needed since they aren't considered a payment system.
Semi-Closed System PPIs
These are accepted at a network of pre-approved merchants, such as digital wallets and food delivery apps.
Cash withdrawals aren't allowed, no matter if the issuer is a bank or a non-bank.
They require agreements with merchants through payment aggregators or gateways.
Open System PPIs
Only banks can issue these, and they can be used at any merchant or service provider.
They allow for cash withdrawals at ATMs, PoS, and through Business Correspondents (BCs).
This type offers more flexibility and promotes financial inclusion.
Prepaid Payment Instruments (PPIs) are a convenient way for users to keep their money stored digitally and make purchases for various goods, services, remittances, and financial services. In India, PPIs are divided into three main categories:
Closed System PPIs
These can only be used within the issuer’s own ecosystem, like gift cards from a specific brand.
You can't make third-party payments or withdraw cash with these.
No approval from the RBI is needed since they aren't considered a payment system.
Semi-Closed System PPIs
These are accepted at a network of pre-approved merchants, such as digital wallets and food delivery apps.
Cash withdrawals aren't allowed, no matter if the issuer is a bank or a non-bank.
They require agreements with merchants through payment aggregators or gateways.
Open System PPIs
Only banks can issue these, and they can be used at any merchant or service provider.
They allow for cash withdrawals at ATMs, PoS, and through Business Correspondents (BCs).
This type offers more flexibility and promotes financial inclusion.
Why is an Escrow Arrangement Essential for PPIs?
Why is an Escrow Arrangement Essential for PPIs?
Protecting Funds
Protecting Funds
An Escrow account serves as a protective barrier, making sure that PPI issuers can’t misuse customer funds before any legitimate transactions take place.
An Escrow account serves as a protective barrier, making sure that PPI issuers can’t misuse customer funds before any legitimate transactions take place.
Consumer Protection
Consumer Protection
By keeping user funds separate from operational funds, an Escrow system helps prevent defaults and shields users from financial risks.
By keeping user funds separate from operational funds, an Escrow system helps prevent defaults and shields users from financial risks.
Maintaining Financial Stability
Maintaining Financial Stability
Escrow arrangements help minimize risks by ensuring that PPI issuers have enough liquidity and adhere to the RBI’s regulatory standards
Escrow arrangements help minimize risks by ensuring that PPI issuers have enough liquidity and adhere to the RBI’s regulatory standards
How the Escrow Process Works
How the Escrow Process Works
Escrow Agent
Escrow Agent
Escrow Agent
The designated commercial bank serves as the escrow agent, keeping the funds safe until they're needed for payments to merchants.
The designated commercial bank serves as the escrow agent, keeping the funds safe until they're needed for payments to merchants.
The designated commercial bank serves as the escrow agent, keeping the funds safe until they're needed for payments to merchants.
Fund Flow
Fund Flow
Fund Flow
The funds collected are securely held and utilized for:
Payments to merchants as per acceptance agreements
Transfers and remittance services
The funds collected are securely held and utilized for:
Payments to merchants as per acceptance agreements
Transfers and remittance services
Regulatory Compliance
Regulatory Compliance
Regulatory Compliance
The RBI’s stringent guidelines for PPI escrow ensure that non-bank PPI issuers conduct their operations in a transparent and responsible manner.
The RBI’s stringent guidelines for PPI escrow ensure that non-bank PPI issuers conduct their operations in a transparent and responsible manner.
The RBI’s stringent guidelines for PPI escrow ensure that non-bank PPI issuers conduct their operations in a transparent and responsible manner.
Castler’s Capabilities on PPI
Castler’s Capabilities on PPI
Castler’s Capabilities
on PPI
API-Powered Escrow for Secure & Compliant PPI Transactions
API-Powered Escrow for Secure & Compliant PPI Transactions
API-Powered Escrow for Secure &
Compliant PPI Transactions
Ensure fund security & regulatory compliance with RBI guidelines
Ensure fund security & regulatory compliance with RBI guidelines
Manage escrow accounts across multiple banking partners for seamless fund movement.
Manage escrow accounts across multiple banking partners for seamless fund movement.
Connect effortlessly with PPI issuers, banks, and payment networks for smooth transactions.
Connect effortlessly with PPI issuers, banks, and payment networks for smooth transactions.
Ensure instant credit to escrow accounts upon PPI issuance, load, or reload.
Ensure instant credit to escrow accounts upon PPI issuance, load, or reload.
Track, manage, and verify PPI transactions with real-time audit trails.
Track, manage, and verify PPI transactions with real-time audit trails.
Secure platform access with customized authorization levels for PPI issuers.
Secure platform access with customized authorization levels for PPI issuers.
Enable fast & secure payments for merchants and consumers.
Enable fast & secure payments for merchants and consumers.
Protect PPI funds with automated risk checks & regulatory safeguards.
Protect PPI funds with automated risk checks & regulatory safeguards.
Maintain full transparency & control over PPI fund management.
Maintain full transparency & control over PPI fund management.
Fund Flow Diagram for PPI Transactions
Fund Flow Diagram for PPI Transactions
Fund Flow Diagram for PPI Transactions
Highlighting Key Aspects:
Highlighting Key Aspects:
Highlighting Key Aspects:
Real-time settlement and authorization process
Real-time settlement and authorization process
Real-time settlement and authorization process
Safe escrow bank integration
Safe escrow bank integration
Safe escrow bank integration
Fund separation for better financial security
Fund separation for better financial security
Fund separation for better financial security
RBI Guidelines on PPI Escrow Accounts
To keep things secure and compliant, the Reserve Bank of India (RBI) requires that all non-bank PPI issuers hold their outstanding balances in an escrow account with a scheduled commercial bank.
Escrow Account Requirement
The balance in the escrow account should never dip below the total outstanding PPI amount by the end of each day.
Quick Fund Transfer
PPI issuers are required to deposit funds into the escrow account on the same business day to ensure transparency and security.
Regulatory Supervision
According to Section 23A of the PSS Act, 2007, non-bank PPI operations are recognized as ‘designated payment systems’, which means they are closely monitored by the RBI.
This Escrow setup safeguards consumer funds, facilitates smooth fund settlements, and bolsters the stability of the financial system.
RBI Guidelines on PPI Escrow Accounts
To keep things secure and compliant, the Reserve Bank of India (RBI) requires that all non-bank PPI issuers hold their outstanding balances in an escrow account with a scheduled commercial bank.
Escrow Account Requirement
The balance in the escrow account should never dip below the total outstanding PPI amount by the end of each day.
Quick Fund Transfer
PPI issuers are required to deposit funds into the escrow account on the same business day to ensure transparency and security.
Regulatory Supervision
According to Section 23A of the PSS Act, 2007, non-bank PPI operations are recognized as ‘designated payment systems’, which means they are closely monitored by the RBI.
This Escrow setup safeguards consumer funds, facilitates smooth fund settlements, and bolsters the stability of the financial system.
RBI Guidelines on PPI Escrow Accounts
To keep things secure and compliant, the Reserve Bank of India (RBI) requires that all non-bank PPI issuers hold their outstanding balances in an escrow account with a scheduled commercial bank.
Escrow Account Requirement
The balance in the escrow account should never dip below the total outstanding PPI amount by the end of each day.
Quick Fund Transfer
PPI issuers are required to deposit funds into the escrow account on the same business day to ensure transparency and security.
Regulatory Supervision
According to Section 23A of the PSS Act, 2007, non-bank PPI operations are recognized as ‘designated payment systems’, which means they are closely monitored by the RBI.
This Escrow setup safeguards consumer funds, facilitates smooth fund settlements, and bolsters the stability of the financial system.
Stay Compliant & Protect with Castler
Stay Compliant & Protect with Castler
With Castler’s escrow solutions, you get a financial framework that’s not just RBI-approved but also fully compliant for PPI issuers. This means you can manage your funds smoothly while staying on the right side of regulations.
With Castler’s escrow solutions, you get a financial framework that’s not just RBI-approved but also fully compliant for PPI issuers. This means you can manage your funds smoothly while staying on the right side of regulations.
With Castler’s escrow solutions, you get a financial framework that’s not just RBI-approved but also fully compliant for PPI issuers. This means you can manage your funds smoothly while staying on the right side of regulations.
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