Prepaid Wallet License

Wondering how to obtain your Prepaid Wallet License? Get expert support assistance and streamline digital transactions for the users.

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Overview of Prepaid Wallet License

PPIs, also known as Prepaid Payment Instruments, hold significant funds and are utilised to purchase goods and services through fund transfers. The holder must pay the exact capital value stored in the Prepaid Payment Instruments, which can be paid through cash, credit card, or debit to a bank account.

A PPI or Prepaid Wallet permits users to purchase items through a digital mode. It is necessary to obtain a Certificate of Authorisation from RBI to set up and operate a payment system for PPIs. Non-bank entities seeking prepaid wallet licenses must adhere to the RBI's Master Direction before applying for this license.

What are Prepaid Payment Instruments (PPIs)?

PPIs are payment instruments that facilitate the purchase of goods and services against the stored value of such instruments. The value fixed on such instruments represents the value paid by the holder by cash or debit against a bank account or credit card. Prepaid Payment Instruments can also be defined as pre-loaded cards or digital wallets used for making digital transactions.

In recent years, Prepaid Payment Instruments (PPI) have become increasingly popular as a convenient substitute for cash transactions. Payment Instruments are also known as E-wallets. Paytm stands out as one of the most popular Prepaid Payment Instruments.

What are the Types of Prepaid Wallets?

Payment wallets, also referred to as electronic wallets or e-wallets, are instruments that enable users to conduct digital transactions. There exist various forms of payment wallets, each with unique characteristics and purposes.

These are the primary categories:

1. Closed Wallet

A closed wallet is a type of mobile or electronic wallet designed to make payments for services provided by the issuer. This type of wallet is not capable of sending money or making payments to external service providers.

2. Semi-closed Wallet

A semi-closed wallet enables users to conveniently conduct transactions at designated merchants and places. This particular wallet is restricted in terms of its coverage area. Merchants must enter into a contract or agreement with the issuer to be able to accept payments from a semi-closed wallet.

3. Open Wallet

An open wallet can be a prepaid payment tools that are accepted for purchasing products and services at any location. The individuals who own these wallets can also withdraw cash from ATMs.

What are the Benefits of Prepaid Wallet?

A prepaid wallet offers budget management, safety, and ease of use and does not need a credit check. It helps to manage spending, minimise debt risks, rewards, and convenient travel with global acceptance and simple tracking of expenses.

Here are the benefits of a prepaid wallet such as:

  1. The products can be easily advertised by promoting the ease of doing cashless transactions and their safety. There is no risk of losing money with these wallets, making it convenient to carry money.
  2. Additionally, the issue of not having any change is resolved by being able to transfer the precise amount.
  3. Money transfers are faster than net banking when sending money to a new customer. The immediate transfer of funds simplifies life for individuals.
  4. The cost of operation of the prepaid wallet is low without any implication of the activation fee or any monthly or annual charges.
  5. Customers can earn bonuses and reward points using their wallets.
  6. Money can easily be transferred to a wallet through a debit card, credit card, etc.
  7. Individuals who often forget their payment schedule can benefit from the autopay feature available in these wallets.

What is the Market Size of Payment Wallet?

By 2024, India's payment wallet industry will be worth around USD 7.2 billion, propelled by the wide acceptance of digital payments and encouraging government regulations. Key players such as Paytm, PhonePe, and Gpay play a significant role in the market's growth, which is projected to increase at a Compound Annual Growth Rate (CAGR) of 20-25% in the upcoming years.

How Does Prepaid Wallet Make Money?

Prepaid wallets make money by levying charges on sellers and customers, receiving interest on the money held by users, and collecting transaction fees for converting currencies. They also make money through ads, deals with companies, exclusive benefits, and the sale of anonymous information.

These strategies ensure that prepaid cards remain financially successful while providing easy-to-use services.

Eligibility Criteria for Obtaining Prepaid Wallet License

The eligibility criteria for obtaining a prepaid wallet license may differ depending on the country and jurisdiction, based on the financial regulations and requirements of local regulatory bodies. The eligibility criteria may also differ from one organization to another. It has been mentioned below on a category basis, such as:

1. NBFCs and Scheduled Banks

Registered NBFCs & scheduled banks authorized by the RBI to offer mobile banking transactions can introduce mobile-based prepaid payment instruments such as mobile wallets and mobile accounts.

2. Companies registered under the Companies Act

A prepaid wallet can only be issued by a company registered under the Companies Act if it is allowed in the object clause of the MOA.

3. Other Organization

Organisations outside the above-mentioned categories must possess a minimum net worth of the amount of Rs.25 Crore. The organization has to maintain this minimum net worth in association with its most recent audited balance sheet.

4. Requirement of Details of Infrastructure

Applicants must give detailed information about their IT infrastructure setup for operating Prepaid Payment Instruments.

5. Business Plan & Project Report

The applicant also needs to submit the details regarding their business plan and project reports to RBI. The plans will include strategies for establishing access points in scheduled areas and a customer grievance portal.

Documents Required for Obtaining Prepaid Wallet License

These are the documents required for obtaining a prepaid wallet license or payment wallet license mentioned below:

  • Name of the Applicant
  • Address Proof of Registered Office
  • Certificate of Incorporation
  • A Complete Report of the principal business of the entity
  • Managerial Details
  • Appointment of Statutory Auditor of the Company
  • Detailed Business Plan and Project Reports
  • The Audited Balance sheet of the financial year
  • Name and Address of Bankers of the Company
  • Expected Profits for the Indian Financial System
  • Proposed Capital Amount
  • Sources of Funds
  • Any other Information required by RBI

(The above list is not an exhaustive list; RBI may ask for more Documents in the process of granting the Prepaid Wallet License)

Procedure to Obtain Prepaid Wallet License

In order to get a license for a prepaid wallet involves a sequence of steps discussed below for your insight such as:

These are the steps involved in obtaining a prepaid wallet license:


Making an Application in Form A for approval as prescribed under Regulation 3(2) of the Payment and Settlement System Regulations, 2008, with the sanctioned government fee and all relevant Documents to the Reserve Bank of India to obtain the PPI License.


The RBI shall initiate the Screening process to ensure the eligibility of applicants.


RBI shall also apply checks, inter-alia, on certain essential aspects like customer service efficiency, technical, safety, and security aspects for ascertaining the requirements for the application.


After the RBI is satisfied with eligibility criteria and fit & proper status, RBI issues an 'in-principal approval’, valid for six months from the approval date.


The Company must submit an Audit Report to RBI within six months. The Company must submit the System Audit Report (SAR); otherwise, automatic in-principal approval will lapse. The Company may get an extension (single) of six months by making an advance appeal in writing with all the valid reasons.


After considering all the particulars furnished by entities, the Company will be granted final approval. The company must commence business within six months of receiving the Certificate of Authorization.

Validity Period of Prepaid Wallet License

The validity period of the prepaid wallet license or the prepaid payment instruments are discussed below such as:

  1. All PPIs issued shall have a minimum validity of 1 year from the last loading or reloading date in the PPIs. PPI issuers are free to issue PPIs with longer validity.
  2. Certificate of Payment Wallet License from RBI shall be valid for 5 years unless otherwise specified. However, it shall be subject to review, including the cancellation of the Certificate of Authorisation by RBI.
  3. If PPIs are issued in the form of a card (with a validity period mentioned on the card), then the customer shall have the option to seek a replacement for the card.
  4. The outstanding balances of payment instruments shall not be terminated immediately at the instrument's expiration. The value may be depleted at 10% of the outstanding value per month. The holders may also be adequately cautioned in advance regarding the expiry of the validity of the payment instruments.
  5. The application for license renewal must be made before 3 months from the date of expiration.

Requirement for Maintaining Prepaid Wallet License

The business has to maintain a net worth of the amount of Rs.15 Crores every financial year depending upon the date of final authorisation. As per the recent amendment, the new applicant should have 15 Crore NOF must be attained by 31st March, 2023 if authorised on 1st March 2021. A net worth of Rs.15 Crores must be attained by 31st March, 2024 if authorised on 31st March, 2024.

Recent Update Regarding Prepaid Wallet License

The Reserve Bank of India has come up with this updated guideline on prepaid payment instruments (PPIs), which allows the fintech companies to hold the PPI license to issue prepaid cards and wallets for public transport systems. It can be used to pay for buses, metros, railways, tools, waterways and parking.

Fees for Obtaining a Prepaid Wallet License in India

The minimal government fees are Rs.10,000 for obtaining a payment wallet license in India, plus professional charges.

Timeframe for Obtaining Prepaid Wallet License

The time required to obtain a prepaid wallet license or start a PPI business can be done within 6 months.

Why Choose Enterslice to Obtain a Prepaid Wallet License?

Opting for Enterslice to acquire a prepaid wallet license comes with numerous benefits, making the procedure more streamlined, effective, and trustworthy. Here are a few main factors that make us stand out as the top choice:

1. Experience and Expertise

We possess vast knowledge of financial services and adherence to regulations. Our team consists of individuals who are highly knowledgeable about the details involved in acquiring a prepaid wallet license.

2. Regulatory Compliance

We possess a thorough knowledge of the regulatory framework and stay updated on any revisions in laws and regulations concerning prepaid wallets.

3. Strong Network

We have developed connections with regulatory agencies and financial institutions that can make interactions easier and approvals quicker.

Our connections in the industry can offer extra assistance and resources, improving the licensing procedure as a whole.

4. Customer Support

Our committed support group is on standby to help with questions and offer advice during the licensing procedure. We also provide post-licensing support to ensure companies stay in line with regulatory standards and adjust to any shifts in the legal environment.


A wallet is a compact software tool utilized for conducting transactions on the internet. Many payment solution providers offer complimentary Wallet software that allows users to set up various payment methods.

Yes, it is mandatory to obtain clearance for obtaining a Payment Wallet License.

RBI reserves the right to authorize Payment Wallet License to companies incorporated under the Companies Act, 2013.

Google Pay and Paytm can be considered the best mobile wallets in India.

There are examples of a PPI wallet are PhonePe, Google Pay, Paytm and Amazon Pay.

Those companies are eligible for PPI, which has been incorporated in India, and have a minimum amount of paid-up capital of Rs.5 Crores at all times.

The closed wallet is a kind of mobile or e-wallet designed to pay in part or full for the services offered by the wallet provider.

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