RBI proposes tighter rules for digital wallets to enhance customer protection
New Delhi, April 25
The Reserve Bank of India has issued a draft Master Direction on Prepaid Payment Instruments 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.
— IANS
Reader Comments
Good move RBI! But ₹2 lakh limit for general purpose wallets? For many small businesses that rely on these for daily transactions, that's quite restrictive. Hope they consider increasing it for verified merchants.
As someone who uses PayTM wallet daily, the ₹10,000 cash loading limit seems a bit low. In smaller towns where card penetration is low, this will be a hassle. But yes, security first! 👍
The escrow account requirement is a masterstroke! For too long, wallet companies were using customer funds for their own operations. Now even if a company goes bankrupt, our money is safe.
Mixed feelings. The disclosure norms in local languages is excellent for financial inclusion. But the ₹15 crore net worth requirement in 3 years will force many small PPI issuers to shut down. Is that the goal? 🤔
Transit wallets capped at ₹3,000? That's very low for anyone using metro or bus passes for a week. Also, immediate refunds for failed transactions is long overdue - many wallets used to take 3-5 days. Finally something positive! 🎉
Respectfully, I think the RBI should also mandate that wallet companies offer interest on the money we
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.