Rs 2 lakh outstanding balance limit, peer-to-peer transaction capped at Rs 25,000 -- Here's all about RBI's draft PPI guidelines
April 23, 2026
RBI's Master Direction on Prepaid Payment Instruments (PPIs), 2026 will replace the existing 2021 guidelines.
New Delhi: The Reserve Bank of India (RBI) has released the Master Direction on Prepaid Payment Instruments (PPIs), 2026, a conducive framework for long term growth of PPIs with enhanced security of transactions.
RBI has said that these directions shall apply to all Prepaid Payment Instrument (PPI) Issuers and System Participants, while a non-bank entity shall seek authorisation for issuance of PPIs by submitting an application. (Also read: Prediction market apps under govt scanner, Centre mulls crackdown)
RBI draft PPI guidelines: Non-bank applicant net worth
The central bank has said a non-bank applicant shall have a minimum net-worth of Rs 5 crore, and shall submit a certificate from its statutory auditor. A non-bank PPI issuer shall attain a minimum net-worth of Rs 15 crore by the end of the third financial year of authorisation. The minimum net-worth, as applicable, shall be maintained by a non-bank PPI issuer on an ongoing basis. (Also read: SEBI slashes minimum investment in social impact funds to Rs 1,000 -- How will it impact small investors?)
RBI draft PPI guidelines: Issuance and Loading of PPIs
In its Conduct of PPI Business guidelines RBI clearly laid down instructions for Issuance and Loading of PPIs. RBI has mentioned the following points
a. A PPI may be issued as a card, wallet, or in any such form / instrument which can be used to access the PPI and to use the amount therein. No PPI shall be issued in the form of a paper voucher.
b. A PPI may be loaded by debit to a bank account or another PPI, or by cash, unless specified otherwise. A Special Purpose PPI may be loaded by a credit card as well.
c. A bank PPI issuer may load PPI through Business Correspondents (BCs).
d. A non-bank PPI issuer may load PPI through its agents in person, in accordance with the provisions outlined by RBI in circular CO.DPSS.POLC.No.S-384/02.32.001/2021-2022 dated August 03, 2021 on ‘Framework for Outsourcing of Payment and Settlement-related Activities by Payment System Operators’, as amended from time to time.
e. A PPI issuer shall not pay any interest on PPI balances.
f. Use of a PPI for cross-border transactions is not permitted.
RBI framework on General Purpose PPI
RBI said a Full-KYC PPI would be issued after completing customer due diligence (CDD) process, in accordance with MD on KYC. A Full-KYC PPI shall be issued subject to the following conditions:
i. An issuer can issue only one such PPI to a holder at any point in time.
ii. Such PPI should have a minimum validity of one year from the date of issuance.
iii. The amount outstanding in such PPI shall not exceed Rs 2,00,000 at any point of time.
iv. The total amount debited from such PPI during a month should not exceed Rs 2,00,000. PPI issuer may set limits within these ceilings, considering the risk profile of the PPI holder, other operational risks, etc.
v. Person to Person (P2P) fund transfers from such PPI (to a bank account or to other PPI) should be limited to Rs 25,000 per month.
vi. Cash loading in such PPI shall be limited to Rs 10,000 per month.
vii. Cash withdrawal using such PPI shall be permitted subject to extant instructions issued by RBI from time to time.
RBI draft PPI guidelines: Interoperability
RBI master circular added that a PPI issuer should facilitate interoperability with card network or Unified Payments Interface (UPI), on the issuer side to a holder of Full-KYC PPI, as per the conditions prescribed by the respective Network Provider. A PPI issuer may also facilitate discovery of PPI on third-party UPI mobile applications.
RBI has said that these directions shall apply to all Prepaid Payment Instrument (PPI) Issuers and System Participants, while a non-bank entity shall seek authorisation for issuance of PPIs by submitting an application. (Also read: Prediction market apps under govt scanner, Centre mulls crackdown)
RBI draft PPI guidelines: Non-bank applicant net worth
The central bank has said a non-bank applicant shall have a minimum net-worth of Rs 5 crore, and shall submit a certificate from its statutory auditor. A non-bank PPI issuer shall attain a minimum net-worth of Rs 15 crore by the end of the third financial year of authorisation. The minimum net-worth, as applicable, shall be maintained by a non-bank PPI issuer on an ongoing basis. (Also read: SEBI slashes minimum investment in social impact funds to Rs 1,000 -- How will it impact small investors?)
RBI draft PPI guidelines: Issuance and Loading of PPIs
In its Conduct of PPI Business guidelines RBI clearly laid down instructions for Issuance and Loading of PPIs. RBI has mentioned the following points
a. A PPI may be issued as a card, wallet, or in any such form / instrument which can be used to access the PPI and to use the amount therein. No PPI shall be issued in the form of a paper voucher.
b. A PPI may be loaded by debit to a bank account or another PPI, or by cash, unless specified otherwise. A Special Purpose PPI may be loaded by a credit card as well.
c. A bank PPI issuer may load PPI through Business Correspondents (BCs).
d. A non-bank PPI issuer may load PPI through its agents in person, in accordance with the provisions outlined by RBI in circular CO.DPSS.POLC.No.S-384/02.32.001/2021-2022 dated August 03, 2021 on ‘Framework for Outsourcing of Payment and Settlement-related Activities by Payment System Operators’, as amended from time to time.
e. A PPI issuer shall not pay any interest on PPI balances.
f. Use of a PPI for cross-border transactions is not permitted.
RBI framework on General Purpose PPI
RBI said a Full-KYC PPI would be issued after completing customer due diligence (CDD) process, in accordance with MD on KYC. A Full-KYC PPI shall be issued subject to the following conditions:
i. An issuer can issue only one such PPI to a holder at any point in time.
ii. Such PPI should have a minimum validity of one year from the date of issuance.
iii. The amount outstanding in such PPI shall not exceed Rs 2,00,000 at any point of time.
iv. The total amount debited from such PPI during a month should not exceed Rs 2,00,000. PPI issuer may set limits within these ceilings, considering the risk profile of the PPI holder, other operational risks, etc.
v. Person to Person (P2P) fund transfers from such PPI (to a bank account or to other PPI) should be limited to Rs 25,000 per month.
vi. Cash loading in such PPI shall be limited to Rs 10,000 per month.
vii. Cash withdrawal using such PPI shall be permitted subject to extant instructions issued by RBI from time to time.
RBI draft PPI guidelines: Interoperability
RBI master circular added that a PPI issuer should facilitate interoperability with card network or Unified Payments Interface (UPI), on the issuer side to a holder of Full-KYC PPI, as per the conditions prescribed by the respective Network Provider. A PPI issuer may also facilitate discovery of PPI on third-party UPI mobile applications.