New Delhi, April 25 The Reserve Bank of India (RBI) has issued a draft Master Direction on Prepaid Payment Instruments (PPIs) to enhance security, customer protection and operational clarity for digital wallets and prepaid cards.
RBI's draft would allow banks that issue debit cards to offer PPIs after informing the Department of Payment and Settlement Systems (DPSS), according to reports.
"A non-bank applicant shall have a minimum net-worth of Rs 5 crore, and shall submit a certificate...from its statutory auditor," the draft said.
The central bank invited public comments on the proposal by May 22, 2026. Further, a non-bank PPI issuer should attain a minimum net-worth of Rs 15 crore by the end of the third financial year of authorisation.
The proposal also mandated non-bank PPI issuer to keep the funds collected against issuance of PPIs in a separate rupee escrow account, maintained with a commercial bank in India.
Under proposed limits, general purpose PPIs can carry an amount outstanding of Rs 2 lakh with a cash‑loading cap of Rs 10,000 per month.
The draft said the maximum value of such a PPI may be capped at Rs 10,000 and in case of transit PPI, it may be capped at Rs 3,000.
"Loading of such PPI shall be against receipt of foreign exchange by cash or through any payment instrument. Total amount debited from such PPI during any month shall not exceed Rs 5 lakh," the RBI's draft read.
PPI issuers must clearly disclose all features, associated charges, validity period and terms and conditions to users at the time of issuance, using simple language, preferably in English, Hindi and the local language, the draft said.
Refunds for failed, returned, rejected, or cancelled transactions should be applied to the respective PPI immediately, even if such refunds could lead to crossing the prescribed limits for that specific PPI category.
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