New Delhi, April 25: The Reserve Bank of India (RBI) has introduced a draft ‘master directive’ aimed at enhancing security, customer protection, and operational clarity for prepaid payment instruments (PPIs), including digital wallets and prepaid cards.
According to reports, under the RBI’s draft, banks issuing debit cards will be able to issue PPIs after notifying the ‘Department of Payment and Settlement Systems’ (DPSS).
The draft states, “Any non-banking applicant must have a minimum net worth of ₹5 crore and must submit a certificate from their statutory auditor.”
The central bank has invited public suggestions on this proposal until May 22, 2026. Additionally, any non-banking PPI issuer must increase their minimum net worth to ₹15 crore by the end of the third financial year after receiving permission.
The proposal also mandates that non-banking PPI issuers keep the amount collected in a separate ‘Rupee Escrow Account’ opened with a commercial bank in India.
Under the proposed limits, general-use PPIs can hold a maximum balance of ₹2 lakh, with a monthly cash deposit limit of ₹10,000.
The draft specifies that the maximum limit for such PPIs can be ₹10,000, while for ‘transit PPIs’ (related to transportation), the limit can be ₹3,000.
According to the RBI’s draft, deposits into these PPIs will only be allowed if the funds were received in cash or through another payment method in foreign currency. No more than ₹5 lakh can be withdrawn from such PPIs in any given month.
The draft also requires PPI issuers to clearly inform users about all features, associated fees, validity periods, and terms and conditions when issuing PPIs. This information should be provided in simple language and ideally available in English, Hindi, and the local language.
In cases of failed transactions, refunds, cancellations, or rejections, the amount should be immediately credited back to the relevant PPI account, even if this action violates the specified limits for that PPI category.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment