RBI releases draft PPI rules, asks feedback by May 22
The Reserve Bank of India (RBI) just dropped a draft of new rules for prepaid payment instruments, or PPIs (think wallets, prepaid cards, and gift cards).
The goal? Make your digital payments more secure and transparent, especially when it comes to refunds or complaints.
RBI is also asking for public feedback on these changes until May 22, 2026.
RBI draft sets issuer criteria, caps
Only banks or authorized non-banks can issue these PPIs now. Non-bank issuers need at least ₹5 crore up front, rising to ₹15 crore in three years.
General-purpose PPIs should have an outstanding balance cap of ₹2 lakh, and Gift PPIs should have a maximum value of ₹10,000.
All features, charges, validity period and terms and conditions should be disclosed clearly, preferably in English, Hindi and the local language.
PPIs may be issued to foreign nationals/NRIs after physical verification of passport and visa for P2M payments during their stay in India.
Plus, full-KYC wallets should work across different card networks or the Unified Payments Interface (UPI), making things smoother no matter which app you use.