The Reserve Bank of India (RBI) is planning stricter rules for digital wallets.
These changes mainly target prepaid payment instruments (PPIs), often used for mobile wallets and prepaid cards.
The goal is simple—make digital payments safer, more reliable, and better regulated as usage continues to grow.
Stricter Rules for Wallet Companies
The RBI wants non-bank wallet providers to be financially stronger.
To get approval, companies must now have at least Rs 5 crore in net worth.
Within three years, this must increase to Rs 15 crore and be maintained going forward.
This move ensures that only stable and serious players operate in the digital payments space.
New Limits for Small Wallets
Small wallets—those with minimal KYC—will now face tighter rules.
Users can hold only one such wallet at a time.
Also, once it expires, a new one cannot be issued automatically.
The existing limits remain:
Maximum balance: Rs 10,000
Monthly spending limit: Rs 10,000
These wallets can only be used for purchases.
Cash withdrawal and money transfers are not allowed.
However, users can upgrade these wallets to full-KYC versions if needed.
What Changes for Full-KYC Wallets?
For full-KYC wallets, most limits remain the same, but some rules are now clearer.
Maximum balance: Rs 2 lakh
Monthly transfer limit: Rs 25,000
Cash loading limit: Rs 10,000 per month
Users can hold only one full-KYC wallet at a time.
These wallets must be valid for at least one year.
Focus on Safety and Transparency
The new draft also strengthens customer protection.
Wallet providers must follow updated KYC rules and allow interoperability through platforms like UPI.
If a wallet becomes inactive or is closed, the remaining money must be returned to the user’s bank account.
Tighter Control on Funds
The RBI has also introduced strict rules on how companies handle customer money.
All funds collected for wallets must be kept in a separate escrow account with a bank.
These funds cannot be used for any other business purpose.
Why This Matters
These changes aim to build trust in digital payments.
Even though UPI dominates daily transactions, wallets still play an important role—especially for specific use cases and users who need simpler payment options.
With stricter rules, the RBI is trying to balance innovation with safety, ensuring long-term growth of India’s digital payment ecosystem.
