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Looking to secure your prepaid wallet license in India? Connect with our regulatory consultants at Enterslice to take the first step towards launching your prepaid payment instrument (PPI) business in full compliance with the RBI guidelines in India.
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A prepaid wallet license, also known as a Prepaid Payment Instrument (PPI), is a license granted allowing a significant instrument to facilitate the purchase of goods and services against the stored value of such instruments. PPI, also known as pre-loaded cards or digital wallets, are used for making digital transactions. They simply serve as a reliable mode of payment that promotes transparency, versatility, and financial accountability.
Prepaid payment wallet, also termed as e-wallets has increasingly become popular as a convenient substitute for cash transactions. It enables users to transfer funds and pay for goods and services, which can be loaded through cash, bank transfers, or credit cards. The PPIs, which is an instrument that enables users to conduct digital transactions, have emerged as an effective strategy for cashless exchange in today’s digital age. Connect with Enterslice to get expert assistance in launching and managing your digital payment solutions with ease.
100% online RBI-Compliant licensing process
Access to India’s regulatory growing digital payment markets
Enhanced customer loyalty through prepaid cards and wallet offers
Open to startups, NBFCs, corporates and aggregators
Regulatory approval from RBI for trust and credibility
Seamless integration with UPI, QR codes and payment gateways
Eligibility for fintech partnerships and government schemes
Supports multiple use cases, bill payments, transfers, and e-commerce
Connect Enterslice to obtain a PPI License, enabling you to launch and scale your digital payment brand into the booming fintech space of India.
The different types of prepaid wallets, also referred to as the old electronic wallets or e-wallets, each having unique characteristics and purposes as defined under the 2017 Regulation, are as discussed below:
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.
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.
An open wallet can be a prepaid payment tool that is accepted for purchasing products and services at any location. The individuals who own these wallets can also withdraw cash from ATMs.
Mobile wallets are digital versions of physical wallets, storing payment information on mobile devices. It guarantees easy integration with multiple payment systems, ensuring contactless payment using their mobile devices.
NBFCs in India are classified based on the regulatory norms set by the RBI. However, each category is subject to different compliance needs. Types of NBFCs based on regulatory norms of the RBI include the following.
Obtaining a prepaid wallet license registration in India involves a structured process regulated by the Reserve Bank of India. Below is a step-by-step overview that helps understand the entire procedure for obtaining a prepaid wallet license RBI in India:
Initially, the applicants must make an online application in Form A to obtain approval under Regulation 3(2) of the Payment and Settlement System Regulations, 2008, along with the prescribed government fee. We help you file an online application.
Once the application is submitted, the RBI must conduct a thorough screening process to ensure compliance with the necessary eligibility criteria, the applicant’s financial stability, customer service framework, operational efficiency, technological readiness, and data security measures.
After the RBI is satisfied with eligibility criteria and fit & proper status, the applicants obtain an in-principal approval, valid for six months from the date of approval. At Enterslice, we help you get in-principal approval.
Within 6 months, the applicants must prepare and submit an audit and system audit report (SAR) to the RBI, otherwise, automatic in-principal approval will lapse. Submitting an advance written appeal with pertinent justification, grants a single 6 months extension to the applicants
After considering all the particulars furnished by entities, the applicants obtain a final approval, allowing the issuance of a prepaid wallet license, taking into account all the information provided by the applicant.
The timeline for obtaining a prepaid wallet license registration in India, which typically takes around 4 to 6 months, varies depending on the multiple regulatory and documentation checks conducted by the RBI.
It takes around 1 to 2 weeks for the preparation of documents, business model and submission of Form A to the RBI.
It takes around 3 to 6 weeks to conduct a preliminary screening to verify the completeness of documents and eligibility of the applicant.
Upon successful completion of preliminary screening, the detailed evaluation of the business model and proposed business activities takes around 7 to 12 weeks.
Upon satisfactory review, the RBI takes around 2 to 3 months to conduct a thorough inspection of the technical, safety, and cybersecurity preparedness of the applicants.
Within 1 month of the satisfaction of all evaluations conducted, the RBI ensures the granting of the prepaid wallet license, ensuring the operation of PPI issuers in India.
These are the documents required for obtaining a prepaid wallet license RBI, as mentioned below:
Name and address proof of the applicant
Address proof of the registered office of the business
Copy of certificate of incorporation and other constitutional documents
A complete report of the principal business of the entity
Details of managers and directors appointed
Appointment of statutory auditor of the company
Details of the statutory auditor of the company
Detailed business plan and project reports
The audited balance sheet of the financial year
Expected profits for the Indian financial system
The details of the proposed capital amount
Payment system details with process flow, technology, security features and interoperability
Details of bank account and bankers of the company
Any other information required by RBI (if any)
The benefits of obtaining a prepaid wallet license online, which offers budget management, safety, and ease of doing business, are as discussed below:
Obtaining a prepaid wallet license effectively promotes safe and convenient cashless transactions, reducing the risk of losing physical money in hand.
Obtaining a prepaid wallet license enables users to transfer funds digitally, resolving the common issue of not having change during transactions.
Having a prepaid wallet enables fast and instant money transfer, compared to traditional net banking, further simplifying everyday transactions in human life.
The operating cost of a prepaid wallet is typically low, which involves no activation fees, monthly charges, or annual maintenance costs, making it an affordable option for both businesses and customers.
Customers using a prepaid wallet get added benefits and incentives, including bonuses, cashback, and reward points, making digital payment not only convenient but also rewarding.
Obtaining a prepaid wallet license from the RBI significantly boosts customers' trust and confidence, positioning your brand as a credible and compliant player in the digital payment space.
Obtaining a prepaid wallet license enables platform integration with key payment systems like UPI, bank APIs, and card networks, allowing for smooth and secure digital transactions.
Obtaining a prepaid wallet license empowers businesses to offer digital payment solutions, helping them expand market reach and enhance potential revenue streams in the rapidly growing fintech ecosystem.
The eligibility criteria to obtain a prepaid wallet license online in India are as discussed below:
Talk to Enterslice consultants, and let us help you overcome the challenges with minimum effort.
The list of top 10 industries and businesses permitted to obtain a PPI license in India are as provided below:
Top 10 Industries Permitted to Apply for PPI License
Top 10 Businesses Permitted to Apply for PPI License
Given below are the post-compliance requirements after securing a Prepaid Wallet License online-
There are multiple revenue streams for PPI issuers with a Prepaid wallet license, while the right type of PPI business model depends upon the product type, like consumer wallet, B2B cards, or embedded finance.
Earn a small fee (0.5%–2%) on every wallet transaction processed through merchants.
Generate income by investing customer funds held in escrow in safe options like government securities or fixed deposits.
Offer loans, insurance, or investment products to users based on their transaction behaviour.
Charge businesses a recurring fee for providing and managing employee wallet solutions.
Earn from currency exchange margins and fees on international transactions.
Provide wallet infrastructure to other platforms via APIs and earn through licensing or per-transaction fees.
The list of the PPI revenue models is as follows:
Earn through MDR, float income, and cross-selling. Works on high transaction volume with low margins, so a large user base is key.
Revenue from platform fees and interchange. B2B-focused with lower volume but higher earnings per client, leading to quicker profitability.
Offer PPI services via APIs to other platforms. Earn through processing or royalty fees without acquiring end-users directly.
Income from forex markup and ATM fees on travel cards. Targets high-value users with better margins and brand positioning.
The RBI introduced new classification for prepaid wallet licenses, determined based on the type of transactions and the level of verification required for the users.
Opting Enterslice for obtaining a prepaid e wallets license comes with numerous benefits, making the procedure more streamlined, effective, and trustworthy. Connect us to know the reasons why Enterslice offers the best services for you to help you get prepaid wallet license in India:
To obtain a prepaid wallet license in India, the applicant must be a company incorporated under the Companies Act, 1956 or 2013, with its MoA covering PPI issuance. It should have a minimum net worth of ₹5 crore at the application stage, increasing to ₹15 crore within three years. The Reserve Bank of India also assesses the “fit and proper” status of management. Additionally, the entity must comply with FDI norms (if applicable).
After obtaining a prepaid wallet (PPI) license, the entity must maintain the prescribed net worth and keep customer funds in an escrow account without co-mingling. It must implement proper security, fraud prevention, and grievance redressal systems, along with two-factor authentication where required. Additionally, the entity must file periodic reports with the RBI, conduct regular system and cybersecurity audits, follow KYC, AML, and CFT norms, handle customer complaints, and report suspicious transactions to FIU-India. Small PPIs must also be converted into full-KYC PPIs within 24 months.
Obtaining a prepaid wallet license online offers multiple benefits, including promoting safe and convenient cashless transactions, eliminating the hassle of exact change, and enabling fast, instant money transfers compared to traditional banking. It comes with low operating costs, often without activation, monthly, or maintenance fees, while providing customers with added incentives like cashback, bonuses, and reward points. The license enhances brand credibility by signalling regulatory compliance, allows integration with key payment systems like UPI and bank APIs, and opens up opportunities for revenue growth by expanding digital payment offerings in the fintech ecosystem.
A prepaid wallet license generally refers to authorization by the Reserve Bank of India (RBI) to issue and operate prepaid payment instruments (PPIs) under the Payment and Settlement Systems Act.
To apply for a prepaid wallet license from the RBI, an applicant must provide proof of identity and registered office address, a copy of the certificate of incorporation and constitutional documents, a detailed report on the principal business, and information on directors and statutory auditors. Additionally, a comprehensive business plan, audited balance sheet, projected profits, proposed capital details, payment system processes and security features, bank account information, and any other information requested by the RBI are required.
A payment 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 from the Reserve Bank of India for obtaining a Payment Wallet License.
The procedure to obtain a prepaid wallet license in India, regulated by the Reserve Bank of India, involves a clear step-by-step process. First, applicants file an online application in Form A along with the prescribed fee. The RBI then screens the application to check eligibility, financial stability, operational efficiency, technological readiness, and data security. On satisfying these criteria, applicants receive in-principle approval valid for six months. Within this period, an audit and system audit report must be submitted, with a possible single six-month extension on request. After reviewing all submissions, the RBI grants the final prepaid wallet license, enabling the entity to issue and operate prepaid wallets.
RBI reserves the right to authorize Payment Wallet License to companies incorporated under the Companies Act, 2013.
In India, prepaid wallets include closed wallets (payments only to the issuer), semi-closed wallets (usable at selected merchants), open wallets (usable anywhere with ATM withdrawals), and mobile wallets (digital wallets on phones for contactless payments).
Google Pay and Paytm can be considered the best mobile wallets in India.
Examples of a PPI wallet in India are PhonePe, Paytm, Mobikwik, and Amazon Pay.
The closed wallet is a kind of mobile or e-wallet designed to pay in part or in full for the services offered by the wallet provider.
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, etc. These strategies ensure that prepaid cards remain financially successful while providing easy-to-use services.
The timeframe for obtaining a prepaid wallet license takes around 4 to 6 months, and varies based on the multiple regulatory and documentation checks conducted by the RBI.
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Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
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