Talk to an Expert


Expertise in Prepaid wallet License


Among Asia Top 100 Consulting Firm

Top 100

Among Asia Top 100
Consulting Firm

step 1
Lowest Fees


Lowest Fees
100,000 + Clients.

step 1

Overview of Prepaid Wallet License or Payment Wallet

Since demonetisation, the RBI has turned its focus to the usage of cashless transfers for all financial purposes. Prepaid Payment Instruments (PPI), also known as Prepaid Wallet Licence, were thus launched in India. Prepaid Wallets are financial tools that facilitate the digital money transfer process. One must seek licences from the RBI in order to comply with this prepaid payment instrument or prepaid wallet system in India. In accordance with the Payment and Settlement System Regulations, 2008, a Prepaid Wallet Licence is given out. And the primary purpose of a Prepaid Wallet Licence is to allow its customers to make purchases or conduct transactions via the online platform.

This Prepaid Wallet Licence 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.

Pre-paid bills are distributed as:

  • Smart cards
  • Cards with magnetic strips
  • Digital wallets
  • Phone Wallets
  • Online Accounts
  • Mobile Accounts
  • Paper Voucher
  • Any such device that allows access to pre-paid funds (referred to as Prepaid Payment Instruments).

Minimum Requirements of Payment Wallet License

The following criteria must be met in order to qualify for a Payment Wallet Licence:

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

This is how the minimum capital requirement should be obtained:

  • Net owned worth
  • Preference Share
  • Paid-up Equity Capital 
  • Free Reserves 
  • Shared Account premium 
  • Expenditure on Deferred Revenue
  • Having capital reserves that are surplus
  • Book value of intangible assets

Non-banking organisations

When applying for RBI authorization under PSS, non-banking organisations are required to register as corporations under the Companies Act of 2013 and to have a minimum net worth of Rs. 5 crores as determined by the 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 kept at all times.

Infrastructure details

The applicant must provide full information regarding the configuration of the IT infrastructure necessary for PPI to function.

Reports on projects and a 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.

Net Worth Certificate

A Net Worth Certificate from CA is required for all registered non-banking organisations 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.
  • Every year, within six months of the end of the financial year, an approved non-bank PPI issuer must submit a Net Worth Certificate in the attached format to demonstrate compliance with the net worth standards as per the audited balance sheet.

If the organisation receives the final authorization on March 1, 2021, it must attain a net worth of at least Rs. 15 crores for financial positions as of March 31, 2023. The entity must reach a net value of Rs. 15 crores for the financial status/position as of March 31, 2024, if it provides final authorization on May 1, 2021.

Benefits of Prepaid Wallet License

In the Indian economy, obtaining a prepaid wallet licence is a very beneficial move; some of its advantages are as follows:

  • A prepaid Wallet is intangible and cannot be stolen or misplaced.
  • Payments in smaller amounts are also possible because online prepaid wallets allow payments of Rs. 113.57.
  • Unlike online banking, transactions in prepaid wallets are completed quickly.
  • Prepaid wallet transactions are free of any additional fees or additional costs.b
  • There are no monthly charges, annual charges, activation fees, or service charges to pay.
  • A simple and quick method of funding prepaid wallets.b
  • Auto-pay capabilities, or the ability to carry out payments on due dates, 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 rewards for purchases or referrals.
  • Improved payments on time and before deadlines.

Types of PPI for Obtaining Payment Wallet License

By modifying the Master Direction on Issuance and Operation of Prepaid Payment Instruments, 2017, the most recent Master Direction of the RBI was published in 2021. In India, this Master Direction has provided the following several PPIs:

Small PPI

The small PPIs are divided into cash-loadable small PPIs and cash non-loadable small PPIs.

Cash Loadable Small 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 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 utilise the provided instruments. The minor PPIs are utilised in conjunction with a collection of recognised merchants who have a specific relationship with a payment aggregator (payment gateway, such as Phone Pay, etc.).

The maximum loaded amount is Rs. 10,000 per month and Rs. 1,20,000 every fiscal year. The maximum amount that can be owed is Rs. 10,000, and the maximum amount that can be debited in a month is Rs. 10,000 Prepaid Payment Instruments can be loaded and reloaded with cash or electronically, and small PPIs must transform into full KYC PPIs within 24 months of the date of issue.

Cash Non-Loadable Small PPIs

Cash withdrawals and fund transfers are not permitted with cash non-loadable 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 predetermined amount of Rs. 10,000 will be deducted from all accounts each month. Loading and reloading is a form of total KFC PPI, bank account, or credit card usage. Any PPI holder has the option to convert Small PPIs with a cash loading capacity into Cash Non-Loadable Small PPIs.


These KYC PPIs are issued by banks or non-banks following the thorough Know Your Customer (KYC) process. These PPIs are used for cash withdrawals or money transfers. The complete KYC limit has been raised from Rs. 1 lakh to Rs. 2 lakh. It can be reloaded. The total quantity of credit and debit transactions allowed each month has no set limit. This category also includes services for cash withdrawals and money transfers.

Specific Categories of PPIs:

PPI is not issued by banks and non-banks apart from the following categories:

Gift PPIs

The value of Gift PPIs is only allowed to be up to 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.

PPIs for Mass Transit Systems (PPI-MTS)

MTS operators issue these PPIs only after receiving permission from the relevant authority in accordance with the PSS Act. 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. The PPI-MTS supplied is reloadable, and its total outstanding value cannot at any time be greater than Rs. 3,000. Under this PPI, money transfers and cash withdrawals are not permitted.

Required Documents for Obtaining Prepaid Wallet Licensea

The following Documents must be submitted in order to obtain a Prepaid Wallet Licence:


  • Applicant's name
  • Address Proof of Registered Office 
  • RBI Certificate of No Objection
  • Certification of Incorporation
  • A thorough account of the company's main operations Managerial Details
  • Detailed Project Reports and Business Plans
  • Funding Sources 
  • Proposed Capital Amount
  • A financial year's audited balance sheet
  • Name and address of the company's bankers
  • The appointment of the company's statutory auditor
  • Profits Anticipated for the Indian Financial System
  • Any other information that RBI requires.

Book a Free Consultation

Get response within 24 hours

Process for Obtaining a Prepaid Wallet License in India

The steps for getting a Prepaid Wallet Licence are as follows:

ApplicationbSubmitting an application to the Reserve Bank of India in accordance with Regulation 3(2) of the Payment and Settlement System Regulations, 2008, along with all necessary paper works and the government fee that has been approved.

ScreeningThe RBI starts the screening procedure to make sure applicants are eligible. When determining the application's criteria, RBI also applies checks, among other things, on some crucial elements including customer service effectiveness and technological, safety, and security issues.

In-Principal ApprovalbThe RBI grants an "in-principle approval" after being satisfied with the application, which is valid for six months from the date of approval.

Audit ReportWithin six months, the applicant provides RBI with an audit report. Additionally, the system audit report (SAR) must be submitted by the applicant in order to maintain automatic in-principle approval. By submitting an advance written appeal with pertinent justifications or explanations, the applicant may also be granted a single extension (of six months).

Obtaining a LicenceThe RBI issued the Prepaid Wallet License after taking into account all the information provided by the applicant.

Transactions Across BordersAccording to a notification from the RBI, those people or organisations that are permitted to issue PPIs (Prepaid Payment Instruments) with foreign currency under the Foreign Exchange Management Act of 1999 are exempt from the PPI rules. Additionally, these businesses are only permitted to transact in foreign currencies up to a maximum of Rs 5000.

Validity Period of Prepaid Wallet License/PPIs

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

Payment instrument amounts that are still owing are not instantly cancelled when they expire. 10% of the outstanding value per month might be used to deplete the value. The expiration of the validity of the payment instruments is sufficiently warned to the holders in advance. Three months after the expiration date is when the renewal application must be submitted.

Corpbiz Assistance in Obtaining Prepaid Wallet License

Corpbiz is an organisation that works with you to connect to knowledgeable professionals in the area in order 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 Corpbiz consistently respond favourably to the legal services we offer. We regularly give our clients an engaging overview that is sorted according to their needs. We will help you obtain a prepaid wallet licence in India and provide the following services:

  • Corpbiz representatives have a speedy response time if a client seeking assistance from them has queries about the legal process for obtaining PPI Authorization. Corpbiz makes sure that interactions between clients and our professionals are always productive and easy. 
  • We offer comprehensive help with obtaining a licence for a prepaid wallet such as application submission, Document drafting, department monitoring etc. So, get in touch with Corpbiz if you want to launch a business by creating your own digital payment wallet. 
  • We offer guidance and help with organising the tasks required to effectively create and submit a licencing application to the appropriate regulator.
  • To ensure our support throughout the licencing process, we help in responding to regulatory queries and support the establishment of any new standards that the regulator requests. 

Frequently Asked Questions

Prepaid payment instruments are ways to make it easier to buy products and services using the value that is stored on them. The value kept on these instruments is the amount that the owner has paid for them with cash, a debit from a bank account, or a credit card.

A closed wallet is a mobile wallet or an electronic wallet that is intended to be used to pay in full or in part for services that are directly offered by the wallet's issuer. Such a wallet cannot be used to transfer money or to pay any third-party service providers.

Semi-closed wallets have a specific agreement with the issuer to accept the payment instruments, but they do not allow cash withdrawals or redemption by the holder. Instead, they allow the purchase of goods and services, including financial services, at a number of clearly identified merchant locations/ establishments.

E-wallets can be launched by either banks or non-banking financial companies (NBFCs). Therefore, registering your business with the Reserve Bank of India (RBI) as an NBFC is the first step in generating an e-wallet.

Only banks with RBI authority to issue such PPIs may issue Open System PPIs. There is just one sort of open system PPI, which is KYC-compliant PPI up to $1,000,000 when the PPI holder has completed their KYC.

A wallet is a small piece of software used for online transactions. Numerous providers of payment solutions, including CyberCase, provide free Wallet software that enables multiple payment methods (such as a variety of credit cards) to be defined within the wallet.

There are three different types of e-wallets in India they are, closed wallet, semi-closed wallet, and open wallet.

Pre-paid Payment Instruments (PPIs) are described as payment instruments that enable the purchase of goods and services, including cash transfers, against the value held on such instruments in the RBI Guidelines published under the Payment and Settlements Systems Act. PPI is one of the components of the Payment System.

The cheapest payment gateway is PayPal. You must submit your bank information in each online store where you wish to make a purchase because it is a secure payment platform.

An electronic device or online service that enables a person to conduct electronic transactions which is referred to as a "e-Wallet" or a "digital wallet." It includes utilising a computer to make online purchases or a smartphone to make in-person purchases at a store.

Why Corpbiz

(We make technical compliance certifications effortless and convenient.)

100,000+ Clients Worldwide

Clients Worldwide

1000+ Team CA/CS/Lawyers

1000+ Team
CA/CS/Lawyers & Engineers

24X7 Customer care

Among 1% of
Industry Professionals

Go for all services

Get started?

We also help you market your products through an online marketplace.

Fill up Application Form

Fill up Application Form

Make Online Payment

Make Online Payment

Executive will Process Application

Executive will Process Application

Get Confirmation Mail

Get Confirmation Mail

1 Lakh+ Global Brands That Trust Us!

Get Started Live ChatLive Chat

Gupta fast food

From Ludhiana Recently Purchased @FSSAI Basic