Who needs a PPI license?

Any non-bank entity that wants to offer a digital wallet (like those in shopping or food delivery apps) that can be used at multiple merchants needs this license.

What is the minimum networth required?

A new applicant must have a minimum networth of ₹5 Crores at the time of application, which must be increased to ₹15 Crores within three years.

Can I withdraw cash from a digital wallet?

Only 'Open System' PPIs issued by Banks allow cash withdrawal at ATMs. Wallets issued by non-banks (Semi-closed) are generally not allowed for cash withdrawal.

What is 'Interoperability' in PPI?

It means that a user should be able to send money from one company's wallet to another company's wallet or to any bank account, usually through the UPI network.

What is a Closed System PPI?

A wallet that can only be used to buy goods/services from the *same* company that issued it (e.g., a brand-specific gift card) is a closed system and doesn't need RBI approval.

What is the balance limit in a wallet?

For Small PPIs (Minimum KYC), the limit is ₹10,000. For Full-KYC PPIs, the balance can go up to ₹2 Lakhs.

How long does it take to get the PPI license?

The process for 'In-principle' approval usually takes 6 to 9 months, depending on the RBI's review of the business model and security.

Service

Prepaid Wallet (PPI) License Online

Apply for an RBI Prepaid Payment Instrument (PPI) license. Mandatory for fintech companies issuing digital wallets and prepaid cards. Expert regulatory guidance.

Enabling the Future of Digital Cash

Apply for an RBI Prepaid Payment Instrument (PPI) license. Mandatory for fintech companies issuing digital wallets and prepaid cards. Expert regulatory guidance.

Launch your own digital wallet. Get your Prepaid Payment Instrument (PPI) authorization from the RBI to issue digital wallets, gift cards, and smart cards.

The mandatory legal authorization from the Reserve Bank of India (RBI) for issuing digital wallets and cards. Launch your payment ecosystem with our expert fintech guidance.

Prepaid Payment Instruments (PPIs) are payment instruments that facilitate the purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holder by cash, by debit to a bank account, or by credit card. This includes digital wallets (like the ones used in popular apps), smart cards, and gift vouchers.

The RBI regulates the issuance of PPIs to ensure the safety of public money and the stability of the payment system. To operate as a PPI issuer, a company must obtain a specific authorization. The latest RBI guidelines (2021) have significantly updated the requirements, focusing on interoperability (the ability to send money from one wallet to another or a bank account via UPI) and strict KYC norms.

QuickTaxperts provides specialized professional support for PPI licenses. We help you choose the right category of PPI (Small or Full-KYC), manage the complex networth certification, and navigate the entire application process on the RBI's DPSS portal.

Category: Financial Services
Authorizes the holding of customer 'float' funds in a secure account.
Enables the issuance of co-branded prepaid cards (in partnership with banks).
Mandatory for any company wanting to offer its own 'Wallet' service.
Requires compliance with strict KYC, Anti-Money Laundering (AML), and Fraud prevention standards.
Mandatory for issuing Wallets, Gift Cards, and Smart Cards
Minimum Networth requirement of ₹5 Crores (at the time of application)
Requires high-level technical security and KYC compliance
Essential for providing specialized payment solutions and loyalty programs

Categories of PPIs in India

Understand your product scope.

Closed System PPIs: Issued by an entity for use only at its own locations/website. No cash withdrawal. No RBI authorization needed.
Semi-Closed System PPIs: Can be used at multiple identified merchant locations. No cash withdrawal. Requires RBI authorization.
Open System PPIs: Issued only by Banks. Can be used for any purchase and for cash withdrawal at ATMs.
Small PPIs: Minimum KYC (mobile OTP). Balance limit is usually ₹10,000. Limited functionality.
Full-KYC PPIs: Requires full verification. Balance limit is usually ₹2 Lakhs. Full functionality including fund transfers.

Eligibility and applicability

We check applicability before filing so the selected registration, licence, or compliance route matches your facts.

Must be an Indian Company registered under the Companies Act.
Must have the necessary objects in the MOA for payment and settlement activities.
Minimum Networth of ₹5 Crores at the time of application (increasing to ₹15 Crores within 3 years).
FDI up to 100% is allowed (under the automatic route for most regions).
Must have a robust IT system with mandatory VAPT and security audits.

Documents required

Document requirements vary by entity type, state, premises, and authority. These are the usual groups we verify before submission.

Mandatory Documents: Certificate of Incorporation and MOA & AOA.; Audited Financial Statements showing the required Networth.; Statutory Auditor's Certificate regarding the networth.; System Audit Report from a CERT-In empanelled auditor.; Detailed Profile and KYC of all Directors and Shareholders.; Business Plan and 3-year Financial Projections.; Risk Management and Customer Grievance Redressal Policy.; Details of the Escrow/Trust Account arrangement.

Our PPI Licensing Workflow

Navigating RBI's wallet regulations in five steps.

Step 1: Networth Preparation: Ensuring the company has the required ₹5 Cr networth and obtaining the CA certificate.
Step 2: IT & Security Audit: Coordinating with a CERT-In auditor to perform the mandatory System Audit and VAPT.
Step 3: Portal Submission: Filing the comprehensive application for authorization on the RBI's DPSS portal.
Step 4: In-Principle Approval: Handling RBI queries regarding the business model and obtaining the 'In-principle' approval.
Step 5: Final Authorization: Submitting the final compliance and security report and receiving the license to start issuing PPIs.

Mandatory Regulatory Norms

Key rules for wallet issuers.

Interoperability: Wallets must be interoperable via UPI for peer-to-peer and merchant payments.
Customer Fund Safety: Float funds must be maintained in an Escrow account with a scheduled commercial bank.
KYC Compliance: Strict timelines for converting Small PPIs to Full-KYC PPIs.
Fraud Reporting: Real-time reporting of fraudulent transactions and cybersecurity incidents to RBI/CERT-In.

Deliverables

After completion, we share organized acknowledgements, references, and next-step guidance for banking, renewals, or future filings.

RBI PPI Authorization Certificate (In-principle/Final)
Approved Customer Grievance and Risk Policies
System Audit & VAPT Summary Report
Interoperability & UPI Integration Roadmap

Expert review

Prepaid Wallet (PPI) License Online content is reviewed by QuickTaxperts Financial Advisory, Fintech Regulatory Specialists.

Checklist-led review
Document pre-verification
Authority-specific next steps

Frequently asked questions

These quick answers cover common planning questions before you request a checklist or quote.

What is a PPI license?: A Prepaid Payment Instrument (PPI) license is an authorization from the RBI to issue digital wallets, gift cards, or smart cards where value is stored in advance.
Who needs a PPI license?: Any non-bank entity that wants to offer a digital wallet (like those in shopping or food delivery apps) that can be used at multiple merchants needs this license.
What is the minimum networth required?: A new applicant must have a minimum networth of ₹5 Crores at the time of application, which must be increased to ₹15 Crores within three years.
Can I withdraw cash from a digital wallet?: Only 'Open System' PPIs issued by Banks allow cash withdrawal at ATMs. Wallets issued by non-banks (Semi-closed) are generally not allowed for cash withdrawal.
What is 'Interoperability' in PPI?: It means that a user should be able to send money from one company's wallet to another company's wallet or to any bank account, usually through the UPI network.
What is a Closed System PPI?: A wallet that can only be used to buy goods/services from the *same* company that issued it (e.g., a brand-specific gift card) is a closed system and doesn't need RBI approval.
What is the balance limit in a wallet?: For Small PPIs (Minimum KYC), the limit is ₹10,000. For Full-KYC PPIs, the balance can go up to ₹2 Lakhs.
How long does it take to get the PPI license?: The process for 'In-principle' approval usually takes 6 to 9 months, depending on the RBI's review of the business model and security.