The RBI has shifted its emphasis to the use of cashless transfers for all financial reasons after the implementation of demonetisation. This led to the introduction of prepaid payment instruments (PPI), also known as prepaid wallet license, in India. Prepaid wallets are financial instruments that make it easier to send and receive money online. To comply with this prepaid payment instrument or prepaid wallet system in India, one needs apply for permits from the RBI. A Prepaid Wallet License is distributed in compliance with the Payment and Settlement System Regulations, 2008 And a Prepaid Wallet License’s main function is to enable its users to make purchases or conduct transactions on an online platform.

This Prepaid Wallet License is a prepaid payment instrument that enables fund transfers using the value that is kept on such instruments as well as the purchase of goods and services. The value that is stored on these instruments is the amount that was paid for them with cash, a debit from a bank account, or a credit card.

Picture1 7


  • RFID cards
  • Cards with magnetic strips
  • Digital wallets
  • Phone Wallets
  • online profiles
  • cellular accounts
  • Paper Coupons
  • Any such device that allows access to pre-paid money (collectively called Prepaid Payment Instruments)

Minimum Conditions for Wallet Payment License

  • NBFCs and banks: A NOC from the Department of Payment Settlement and Systems of the RBI is required for banks and NBFCs.
  • Minimum Required Capital: 
  1. Owned net wealth
  2. Shares of preferences
  3. Paid-up Equity Investment
  4. No-Risk Reserves
  5. Account premium shared
  6. Expenditure on Deferred Revenue
  7. Having capital reserves that are surplus
  8. Value at book for intangibles
  • Non-Banking Entities:  To apply for RBI authorization under PSS, non-banking entities must incorporate as corporations under the Companies Act of 2013 and demonstrate a minimum net value of Rs. 5 crores on their most recent audited balance sheet. The entity shall reach a minimum positive net worth of Rs. 15 crores by the end of the third financial year, which must be always kept.
  • Infrastructure Details: The applicant must provide full information regarding the configuration of the IT infrastructure necessary for PPI to function.
  • Project Reports and Business Plan:  The applicant submits to RBI a thorough Project Report and Business Plan. The business strategy must be practical and include information on the bank’s entry point in semi-urban or rural areas, a process for resolving client complaints, and a joint venture with a Scheduled Commercial Bank.
  • Certified Net Worth: A Net Worth Certificate from CA is required for all registered non-banking organizations that have not had their financial accounts audited.

A corporation must be able to carry out the issuer’s PPI activities under the MOA’s object clause.

Within six months of finishing such an audited balance sheet, an authorized non-bank PPI issuer must submit a Net Worth Certificate each year in the enclosed format to demonstrate compliance with the net-worth requirements.



Closed wallets: These are given by businesses to customers who will only use them to pay for specific goods or services.

Semi-closed wallet: Only a select group of vendors are accessible to the owner of a semi-closed wallet.

Semi-Open Wallet: A semi-open wallet enables its owner to make purchases at merchants that take electronic payment methods.

Open Wallet: The owner can use it anywhere to make purchases of products and services.

Cross-border transaction: Those who have been given permission to employ PPI instruments that are heavily reliant on foreign currencies must now abide by the rules.


  • Prepaid Wallet is immaterial and cannot be taken or misplaced.
  • Payments in smaller amounts are also possible because online prepaid wallets allow payments of up to Rs. 143.57.
  • Unlike online banking, transactions in prepaid wallets are completed instantly.
  • Prepaid wallet transactions are free of any additional fees or additional costs.
  • There are no monthly fees, annual fees, activation fees, or service fees to pay.
  • Simple and quick method of funding prepaid wallets.
  • Auto-pay capabilities, or the ability to carry out payments that are overdue, are available.
  • Prepaid wallets have password protection, making them theft-proof in contrast to physical wallets.
  • When launching this online prepaid wallet system, there’s no need to enter too many details.
  • Additionally, prepaid wallets provide incentives and prizes for purchases or referrals.
  • Enhanced the prompt payment of bills by the due date.


  • PPI Cash Loadable Small Little PPIs: Small PPIs, which include both facilities with and without cash loading, are permitted to be provided by banks and non-banks in accordance with the new RBI Master Circular for 2021 after receiving the bare minimum of information from the PPI holder. These PPIs, however, are issued in electronic form and are reloadable. To buy goods and services, one must utilize the provided instruments. A collection of specified merchants with a specific relationship to a payment aggregator are utilized in conjunction with the small PPIs.
  • Non-Loadable Cash Little PPIs: Cash withdrawals and fund transfers are not permitted with small PPIs. The maximum amount that can be loaded each month and each fiscal year is Rs. 10,000 and Rs. 1,20,000, respectively. Additionally, the outstanding balance is only 10,000 rupees. A fixed amount of Rs. 10,000 will be deducted from all accounts each month. A form of total KFC PPI, bank account, or credit card usage is loading and reloading. Any PPI holder has the option to convert Small PPIs with a cash loading capacity into Cash Non-Loadable Small PPI.
  • PPI full KYC: These KYC PPIs are issued by banks or non-banks following the thorough Know Your Customer process (KYC). These PPIs are used for cash withdrawals or money transfers. The complete KYC limit has been raised from Rs. 1 lakh to Rs. 2 lakhs. It can be reloaded. The total quantity of credit and debit transactions allowed each month has no set cap. This category also includes services for cash withdrawal and money transfers.

Specific PPI Categories: 

  • Gift PPIs: The maximum amount under Gift PPIs is Rs. 10,000. These cannot be reloaded, and this category forbids both fund transfers and cash withdrawals. While a separate KYC is not necessary for clients using instruments like debit and credit cards, the PPI issuer maintains KYC information.
  • Mass Transit Systems PPIs (PPI-MTS): Only after receiving permission from the relevant authority in accordance with the PSS Act may MTS operators issue these PPIs. Automated fare collection is a key component of transportation services, and these PPIs are only employed at outlets with on-site operations. The PPI issuer chooses which consumer information is necessary for such PPIs.


  1. From the last loading/reloading date in the PPIs, all issued PPIs must have a minimum validity of one year. It is up to PPI issuers whether to offer PPIs with a longer validity.
  2. Unless otherwise stated, the RBI Certificate of Payment Wallet License is valid for 5 years. The RBI may, however, evaluate it and decide to revoke the Certificate of Authorization.
  3. The consumer will have the option to request a replacement card if PPIs are issued in the form of a card (with a validity period noted on the card).
  4. When a payment instrument expires, the outstanding sums on that instrument are not instantly cancelled. 10% of the outstanding value could be spent off the value each month. These people may also receive appropriate warning prior to the validity of the payment instruments expiring.
  5. Applications for license renewals must be submitted no later than three months after the expiration date.

Documents required for obtaining prepaid wallet license

  • Candidate’s name
  • Proof of Address for Registered Office
  • RBI No-Objection Certificate
  • Declaration of Incorporation
  • A thorough account of the entity’s primary business
  • Management Information
  • Detailed Project Reports and Business Plans
  • Funding Sources
  • Suggestion Capital Amount
  • a financial year’s audited balance sheet
  • Name and address of the company’s bankers
  • Appointment of the company’s statutory auditor
  • Profits anticipated for the Indian Financial System
  • Any further information that RBI requires


  • Application: To apply for the PPI License, apply to the Reserve Bank of India in accordance with Regulation 3(2) of the Payment and Settlement System Regulations, 2008, along with the authorized government fee and all necessary documentation.
  • Screening: The RBI starts the screening procedure to make sure applicants are eligible. When determining the application’s criteria, RBI also conducts checks, among other things, on some crucial elements including customer service effectiveness and technological, safety, and security issues.
  • Initial Acceptance: The RBI grants an “in-principal approval” after being satisfied with the application, which is valid for six months from the date of approval.
  • Review Report: Within six months, the applicant provides RBI with an audit report. Additionally, the system audit report (SAR) must be submitted by the applicant to maintain the automatic in-principal approval. By submitting an advance written appeal with pertinent justifications or explanations, the applicant may also be granted a single extension (of six months).
  • Grant for License: The RBI awards the Prepaid Wallet License after considering all the information provided by the applicant.

Eligibility requirements to get prepaid wallet license in indi

The minimum validity of issued Prepaid Wallet Licenses is one year from the latest loading or reloading date in PPIs. PPI issuers may, however, choose to issue PPIs with a longer validity. Unless otherwise stated, the RBI’s Certificate of Payment Wallet License is valid for five years. However, it is also open to review, including RBI’s potential revocation. Customers can get a new card if PPIs are issued in the form of a card (with a validity period specified on the card).

Corboz is an organization that works with you to connect to knowledgeable professionals in the area to help the fulfilment of all your legal and financial obligations. Because we place a strong emphasis on streamlining the requirements of the law, clients who seek assistance from Corboz consistently respond favourably to the legal services we offer. We regularly give our clients an engaging overview that is organized according to their needs.

Corboz representatives have a speedy response time if a client seeking assistance from them has queries about the legal process for obtaining PPI Authorization. Corboz makes sure that interactions between clients and our professionals are always productive and easy.


Scroll to Top