Anindita Nayak
Bhubaneswar, 2 May 2026
RBI has plans to modify the PPI rules which encompass digital wallets, prepaid cards and other related payment instruments. The objective of modifying these rules will be to promote sustainable development of these instruments by improving transaction safety, increasing consumer protection, and making the process more efficient.
FAQ Simplification:
What are PPIs?
Prepaid payment instruments (PPIs) are types of financial products that allow users to deposit money prior to spending from the pre-deposited amount for future payments.
The Reserve Bank of India defines a PPI as a payment method which requires users to preload funds before they can use the service to make payments. The range of examples includes mobile wallets gift cards transit cards and other similar prepaid options.
Why is RBI changing the rules?
The Reserve Bank of India is currently assessing existing regulations because it wants to improve digital payment security systems between its current state and upcoming developments. The draft requires a total examination of current rules to establish better security measures which will protect the system for future operations.
Will wallet balances have limits?
Yes, the draft suggests setting different limits for different types of wallets to keep usage under control.
For example:
- General-purpose wallets may allow up to ₹2 lakh balance
- Cash loading could be limited to ₹10,000 per month
- A gift wallet can have a limit of ₹10,000
- A transit wallet should not cross ₹3,000
This is because they are meant to facilitate easy transactions while keeping risks in mind.
What happens if a transaction fails?
The system introduced new refund procedures which provide better usability for customers. The Reserve Bank of India states that all failed, cancelled, rejected and returned transactions must return their funds to the wallet without delay. The system enables users to obtain their refund money immediately because their refund process needs to exceed the established wallet limit.
Will wallet companies have to follow stricter rules?
Yes. The draft proposes tighter rules for non-bank wallet providers. The Reserve Bank of India requires companies to maintain a minimum net worth of ₹5 crore which they must increase to ₹15 crore by the end of their third year after approval. The goal is to ensure that only financially strong and stable companies operate in this space.
How will customer protection be handled?
The RBI is focusing strongly on transparency and handling customer complaints.
The draft says wallet providers must clearly explain all features, charges, validity, and terms in simple language. It also requires them to have a proper complaint system with clear steps and timelines for resolving issues.
Will wallets be better integrated with UPI?
The primary aim of the project is to enhance system compatibility with existing UPI wallets. The Reserve Bank of India requires that fully verified users who complete full-KYC verification must be able to use their digital wallets for payments through card networks and Unified Payments Interface. The system also needs to implement a feature which enables users to discover and access their wallets through third-party UPI applications.
Are agents allowed to charge extra fees?
The draft states that agents of wallet providers must not charge customers any additional fees. The RBI plans to enhance digital wallet security through their proposed changes which will create more transparent systems and establish stricter regulations as digital wallet usage increases. The framework specifies clear guidelines about the operational procedures, including constraints, refunds, and disclosures, thereby reducing operational risks.
