Get your PPI License with our Prepaid Wallet License Consultants, empower your customers with seamless transactions, and rule the fintech segment. Trust our professionals, having more than 10 years of experience, and gear up to enter India’s Rs 10 lakh crore+ wallet economy.
What’s Included?
Get Free Expert Consultation
Since demonetisation, the RBI has shifted its focus to promoting cashless transactions for all financial activities. This led to the introduction of Prepaid Payment Instruments (PPI), commonly known as PPI License or Prepaid Wallet License in India. Prepaid Wallets are digital tools that facilitate money transfers online.
To operate within this system, businesses must obtain a PPI License from the RBI, as regulated under the Payment and Settlement Systems Act, 2007. The main purpose of this license is to allow customers to make purchases or conduct transactions online using stored value in the wallet.
A PPI License enables users to transfer funds and pay for goods and services using the stored value, which can be loaded through cash, bank transfers, or credit cards.
Get expert assistance for obtaining prepaid payment wallet license in India with the help of our prepaid wallet license consultants.
A PPI License acronym is a prepaid payment instrument, a license that is issued by the Reserve Bank of India (RBI) under the Payment and Settlement Systems Act, 2007. PPI is an instrument that facilitates purchasing goods and services along with financial services, remittances, and fund transfers against the amount or value stored on them.
Some of the examples for PPI are e-wallets, prepaid cards, and various other mobile wallets like Paytm, PhonePe, etc. Therefore, any entrepreneur aiming to run a business of Prepaid Payment Instrument (PPI) must obtain a PPI license from the concerned authority to ensure compliance with financial laws and regulations, safeguard customers' funds, and operate safely within the financial ecosystem.
In the Indian economy, obtaining a Prepaid Payment Instrument License or Payment Wallet License is a very beneficial move to run a Prepaid Payment Instrument business; some of its benefits are as follows:
In India, the market size of the PPI or Prepaid Payment Instrument is experiencing magnificent growth, driven by the increasing adoption of digital payment methods rather than the traditional payment system. However, with the introduction of digital India by the government of India, the expansion of e-commerce has increased exponentially.
As per the record, the Prepaid Payment Instrument in India has increased at a CAGR of 18.4% during 2019-2023. On the other hand, over the period of 2024-2028, the market for the same is expected to record a CAGR of 29.7%, increasing from US$35.69 billion in 2023 to reach US$134.59 billion by 2028 as per the Research and markets.
Generally, Prepaid payment instruments generate money by applying various charges and fees to services used by merchants. On the way, they charge a small percentage of each transaction when customers use PPI for payments. Have a look at some of the ways PPI issuers make money in India.
PPI revenue models, covering digital wallets, smart cards, and B2B cards. and embedded finance, enables issuers to monetize the retained value and transactional activity within closed or semi-closed systems. However, it is generated through a mix of fees, interchange, float income, and value-added services.
The non-banking entities applying for a PPI license in India must comply with the following eligibility criteria, as discussed below:
Looking to dominate the fintech industry by issuing or operating the prepaid payment instruments? If yes, you must understand the documentation needs first. The documents required for a Prepaid Wallet License are as follows:
Make your documentation easy with our prepaid wallet license consultants.
The step-by-step process for obtaining a Prepaid Wallet license in India is as follows:
Step 1: Complying with Regulatory Requirements
Initially, the applicants must confirm their compliance with the object clause in the MOA, align with the shareholding and investment structure, and map the exact wallet proposition by identifying whether it qualifies as a small or full-KYC PPI.
Step 2: Preparing & Filing Application
The next step is to prepare and file an application, along with the necessary paperwork, with the RBI in accordance with Regulation 3(2) of the Payment and Settlement Systems Regulations, 2008.
Step 3: Preliminary Screening
In the next step, the RBI begins a preliminary screening process to assess prima facie eligibility, including customer effectiveness, technological safety, and security issues.
Step 4: Obtaining In-Principle Approval
In the next step, the RBI grants in-principle approval upon being satisfied with the application, which is valid for 6 months from the date of approval.
Step 5: Prepare Audit Report
Within 6 months of obtaining in-principle approval, the applicants submit an audit report to the RBI to maintain automatic in-principle approval.
Step 6: Obtain Final PPI License
Upon being satisfied and having taken into account all the information provided by the applicant, the RBI issues a PPI license, thereby authorizing the commencement of cross-border transactions.
Step 7: Post-Launch Compliance
Post-PPI license issuance, the PPI license issuers must adopt a high-compliance operating model that includes escrow management, KYC, security audits, compliance reporting, net worth maintenance, and ongoing regulatory oversight.
Talk to our Prepaid Wallet License Consultants for a hassle-free and smooth process.
As per the Reserve Bank of India (RBI), there are three types of PPI licenses. Given below is the list of three prominent Payment Wallet Licenses:
A closed PPI license or a closed Payment Wallet License is a type of PPI license that can be used only to make purchases at the issuing entity, such as a gift voucher or a rail metro card, which can only be used before the respective store or a system. This means it has limited access and is not eligible to use to buy items or services from various other providers.
Additionally, one cannot withdraw cash from it since the closed-system PPI is not considered a payment system by the RBI. Subsequently, they do not require prior approval from the RBI for issuance.
A semi-closed PPI license allows prepaid payment instruments to be used at various establishments, though not universally. This license is granted to banks, NBFCs, and companies registered under the Companies Act 2013 but requires prior authorization from the RBI. These PPI wallets can be used to buy goods and services and are redeemable only at specific merchants who have contracts with the PPI issuer.
This open PPI license is only issued to banking institutions that have prior approval from the RBI. This payment wallet instrument is used for purchasing, remittances, cash withdrawals, etc. Examples are Master Card, Visa Card, and so on.
In general, the validity period of the Prepaid Payment Wallet License granted by RBI is five years but is subject to review and potential revocation. Additionally, the minimum validity of issued Prepaid Payment Instruments (PPIs) is one year from the date of the last loading or reloading, though issuers may choose to provide PPIs with longer validity.
On the other hand, if a PPI is issued as a card, customers have the option to get a new card if needed. Upon expiration, the remaining balance is not instantly cancelled; instead, 10% of the outstanding value may be deducted monthly until depleted. Customers are given advance notice of the expiration, and renewal applications must be submitted within three months after the expiration date.
Have a look at the significant updates on Prepaid Wallet License approval by RBI- :
The post-PPI licensing compliance requirements in India are as follows:
The government fees for obtaining a Prepaid Wallet License in India start at ₹10,000, though this can vary based on the entity. To ensure a smooth and hassle-free process, it is recommended to seek assistance from Prepaid Wallet License consultants. Their charges are separate from the government fees.
The timeline for obtaining a Prepaid wallet license from the Reserve Bank of India typically varies from 4 to 6 months. However, the entire process involving filing application Form A, passing through regulatory screening, obtaining in-principle approval to build infrastructure, and obtaining final PPI license authorisation requires a timeline varying based on the promptness of documents, regulatory queries, application quality, audit readiness, and sponsor-bank execution. .
At Corpbiz, we help entrepreneurs get the licenses they desire from the concerned authorities. We have a proven track record of 10+ years in the regulatory space. If you are looking for a prepaid payment wallet license in India, you can't think of a better place than us. Here’s how Corpbiz can assist you with obtaining a Prepaid Wallet License in India:
Legal Researcher
Written by Neha Dawra. Last updated on May 28 2026, 11:47 AM
Neha Dawra has 4+ years of experience in legal research and intellectual property advisory. Her expertise lies in analyzing IP laws, drafting structured legal content, and simplifying complex registration procedures into clear, simple insights.
Trusted by thousands of businesses across India for seamless compliance, registrations, and advisory services.
Really thankful to Corpbiz. Our experience with its expert was tremendous. Strong professional approach towards clients. My Company Registration was filed in a very less time, thanks to Corpbiz experts.
We would recommend Corpbiz incorporation services to any founder without a second doubt. The process was beyond efficient and shows Corpbiz founder's commitment and vision to truly help entrepreneurs and early stage startups to get them incorporated with ease.
I was searching for a company for assistance in the incorporation services. Then one of my friend tell me about Corpbiz and definitely the Corpbiz team is really efficient and has an experienced staff to guide us through the entire process of Company Incorporation.
Setting up our Bio Medical Waste Recycling Plant was a huge project. Mukul managed the entire compliance framework seamlessly from start to finish.
Corpbiz is very reliable and efficient. They managed all paperwork, resolved my queries, and completed my GST registration much quicker than I expected.
