Non-bank entities that want to issue prepaid payment instruments such as wallets and prepaid cards need authorisation from the RBI under the Payment and Settlement Systems Act, 2007 and RBI's Master Directions on PPIs. Applicants must be companies meeting net worth requirements, keep customer funds in an escrow account with a bank, and follow KYC, limits and interoperability rules.
Eligibility
- Company incorporated in India
- Minimum net worth as prescribed, with a higher amount required within a set period
- Fit and proper management
- Sound technology and security systems
Types of PPIs
| Type | Features |
|---|---|
| Small PPI | Minimum-detail KYC, lower limits, restricted uses |
| Full-KYC PPI | Higher limits, fund transfers, interoperability |
Application
- Apply to RBI with business plan, net worth certificate and system details.
- In-principle approval and system audit.
- Final authorisation.
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Get expert help →Compliance
Maintain escrow balances, follow KYC and AML rules, report fraud, meet cyber security and system audit requirements, and handle customer grievances.
Frequently asked questions
Do closed-loop wallets need RBI authorisation?
Closed-system PPIs, usable only to buy the issuer's own goods and services, do not require RBI authorisation.
Can a PPI issuer pay interest on balances?
No. PPI issuers cannot pay interest on wallet balances.
How long does PPI authorisation take?
The process can take several months, including in-principle approval and system audits.
Can a startup apply for a PPI licence?
Yes, if it is a company meeting net worth and other eligibility requirements.
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