RBI Guidelines

Types of Wallets

Closed System PPIs: These are PPIs issued by an entity for facilitating the purchase of goods and services from that entity only. No cash withdrawals are permitted. These instruments cannot be used for payment or settlement for third party services. The issuance and operation of such instruments is not classified as a payment system and does not require approval / authorization from the RBI.

Semi-closed System PPIs: These are PPIs issued by banks (approved by RBI) and non-banks (authorized by RBI) for purchase of goods and services, including financial services, remittance facilities, etc., for use at a group of clearly identified merchant locations / establishments which have a specific contract with the issuer (or contract through a payment aggregator / payment gateway) to accept the PPIs as payment instruments. These instruments do not also permit cash withdrawal, irrespective of whether they are issued by banks or non-banks.

Open System PPIs: These are PPIs issued by banks (approved by RBI) for use at any merchant for purchase of goods and services, including financial services, remittance facilities, etc. Cash withdrawal at ATMs / Points of Sale (PoS) terminals / Business Correspondents (BCs) is also allowed through these PPIs.

What is the Link for RBI Guidelines

https://m.rbi.org.in/scripts/FS_FAQs.aspx?Id=126&fn=9

Who Can issue a wallet

Issuers are companies incorporated in India and registered under the Companies Act, 1956 / Companies Act, 2013. They operate / participate in a payment system for issuing PPIs to individuals / organizations. A company can issue and operate PPIs after receiving authorization from RBI.

what can the money be used for

The monies so collected are to be used by the entities to make payments to merchants who are part of the acceptance arrangement and for facilitating funds transfer / remittance services on behalf of the wallet holders.

Simplest wallet

a) The amount loaded during any month shall not exceed ₹ 10,000/-

b) The total amount loaded during the financial year shall not exceed ₹ 1,00,000/-.

c) The amount outstanding at any point of time shall not exceed ₹ 10,000/-.

d) The total amount debited during any given month shall not exceed ₹ 10,000/-.

simplest top up

a) The amount loaded during any month shall not exceed ₹ 10,000/-.

b) The total amount loaded during the financial year shall not exceed ₹ 1,20,000/-.

c) The amount outstanding at any point of time shall not exceed ₹ 10,000/-.

d) Loading / Reloading shall be from a bank account and / or credit card.

e) The minimum-detail PPIs existing as on December 24, 2019 can be converted to this PPI, if desired by the PPI holder.

simplest KYC

The minimum details in a ‘minimum-detail’ PPI and in ‘PPI with loading only from bank account’ are same and are as under:

  1. mobile number verified with One Time Pin (OTP) and

  2. self-declaration of name and unique identity / identification number of any ‘mandatory document’ or ‘officially valid document’ (OVD) listed in the RBI’s Master Direction on KYC / Rule 2(d) of the PML Rules, 2005(as amended from time to time). The present list of mandatory document / OVDs include PAN, passport, driving licence, Voter's Identity Card, NREGA job card, proof of possession of Aadhaar number and letter issued by the National Population Register.