New Delhi, June 3, 2025 – In the rapidly evolving digital economy, the demand for secure and efficient payment solutions has surged. Prepaid Payment Instruments (PPIs), commonly known as payment or prepaid wallets, have become integral to facilitating seamless transactions. Recognizing this, the Reserve Bank of India (RBI) has established a comprehensive framework for entities seeking to operate in this domain.

Understanding Prepaid Payment Instruments (PPIs) https://www.corpzo.com/payment-wallet-license-or-prepaid-wallet-licence

PPIs are instruments that facilitate the purchase of goods and services, including financial services, remittance facilities, etc., against the value stored on such instruments. They are classified into three categories:

Closed System PPIs: Issued by an entity for facilitating the purchase of goods and services from it. These do not permit cash withdrawal or redemption.

Semi-Closed System PPIs: Used for the purchase of goods and services, including financial services, at a group of clearly identified merchant locations/establishments which have a specific contract with the issuer to accept the PPIs.

Open System PPIs: Issued only by banks and can be used at any merchant for purchase and also permit cash withdrawals at ATMs.


Eligibility Criteria for Obtaining a Payment Wallet License

Entities aspiring to issue PPIs must adhere to the following prerequisites:

Incorporation: Must be a company incorporated in India under the Companies Act, 2013.

Net Worth: At the time of application, a minimum positive net worth of ₹5 crore is required. This must be escalated to ₹15 crore by the end of the third financial year from the date of receiving final authorization.

Memorandum of Association (MoA): The MoA should explicitly permit the company to undertake the business of operating as a PPI issuer.

Foreign Direct Investment (FDI): Entities with FDI must comply with the capital requirements as per the FDI policy guidelines.

Comprehensive Registration Process

The journey to obtaining a payment wallet license involves several meticulous steps:

Application Submission: Filing of Form A under Regulation 3(2) of the Payment and Settlement Systems Regulations, 2008, along with the requisite fees to the RBI.

Preliminary Screening: RBI conducts an initial assessment to ensure the applicant's eligibility and the completeness of the application.

'Fit and Proper' Evaluation: An in-depth evaluation of the applicant's management, financial soundness, and adherence to regulatory norms.

In-Principle Approval: Upon satisfactory evaluation, RBI grants an 'in-principle' approval valid for six months.

System Audit Report (SAR): The applicant must submit a SAR conducted by a certified auditor within the validity period of the in-principle approval.

Final Authorization: Post satisfactory SAR submission, RBI issues the final Certificate of Authorization, enabling the entity to commence PPI operations.

Essential Documentation

Applicants must furnish a comprehensive set of documents, including:

Certificate of Incorporation and MoA.

Detailed business plan and project report.

Audited balance sheets and net worth certificates.

Details of IT infrastructure and security measures.

Information on management and board of directors.

Compliance and Operational Guidelines

Post-authorization, PPI issuers must adhere to stringent compliance norms:

KYC and AML Norms: Implement robust Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

Data Security: Ensure the security of customer data through advanced encryption and cybersecurity measures.

Transaction Monitoring: Maintain records of all transactions for a minimum of ten years and report suspicious activities to the Financial Intelligence Unit-India (FIU-IND).

Interoperability: Facilitate interoperability through the Unified Payments Interface (UPI) infrastructure, adhering to all associated requirements.

Corpzo.com's Expertise in Facilitating License Acquisition

Navigating the regulatory landscape for payment wallet license registration can be intricate. Corpzo.com offers end-to-end assistance, encompassing:

Regulatory Consultation: Expert guidance on compliance with RBI norms and eligibility criteria.

Documentation Support: Assistance in preparing and reviewing all necessary documentation.

Application Processing: Liaising with regulatory bodies to ensure smooth application submission and follow-up.

Post-Authorization Compliance: Ongoing support to maintain compliance with operational guidelines and regulatory updates.

Conclusion

The digital payment ecosystem in India is poised for exponential growth, and obtaining a payment wallet license is a strategic move for entities aiming to capitalize on this trend. With a thorough understanding of the regulatory framework and meticulous preparation, businesses can successfully navigate the licensing process. Corpzo.com stands as a trusted partner in this journey, offering unparalleled expertise and support.

For more information and personalized assistance, visit Corpzo.com.

Media Contact:

Corpzo.com
Brand Name:- CorpZo
Address:- G 10, Sector 63, Noida, India, 201301,
Email:- [email protected],
Phone:- +91 9999 139 391,
Web Address:- https://www.corpzo.com