The Reserve Bank of India is planning to make digital payments easier for visitors coming to India.
A new proposal could soon allow foreign nationals and NRIs to use prepaid wallets during their stay.
A Digital Payment Boost for Travelers
Under this plan, banks and non-bank entities will be allowed to issue prepaid payment instruments (PPIs) to international visitors.
These wallets will be loaded in Indian Rupees, making it easier for travelers to pay without worrying about currency exchange every time they shop or dine.
The rollout is expected to begin with G20 travelers at select international airports.
To ensure security, these wallets will be issued only after proper KYC checks, including passport and visa verification at the time of issuance.
The goal is simple: give foreign visitors a smooth, digital-first payment experience and encourage the use of Unified Payments Interface (UPI) across the country.
How These Wallets Will Work
These PPIs will be UPI-linked wallets, but with a clear limitation—they can only be used for merchant payments.
This means users can pay businesses, shops, and services, but they won’t be able to send money to individuals.
Adding money to these wallets will only be possible using foreign exchange.
Travelers can load funds using cash or other approved payment methods, and the conversion into rupees will be handled by authorised entities under FEMA rules.
What Happens to Unused Money?
If there’s any balance left in the wallet at the end of the trip, users won’t lose it.
They can either convert the remaining amount back into foreign currency or transfer it back to their original payment source, following existing foreign exchange guidelines.
Overall, the move is aimed at making India more tourist-friendly while pushing forward its fast-growing digital payments ecosystem.
