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RBI drafts new rules for prepaid wallets splitting KYC, limits and foreign travel use
Economy
Published on 24 April 2026
Foreign visitors get UPI One World wallets, after passport checks
The RBI has released draft Master Directions on Prepaid Payment Instruments (PPIs) to replace the 2021 framework, tightening oversight for banks, fintechs and wallet operators. The proposal sharply categorises PPIs by KYC levels, sets strict monthly and outstanding caps, expands UPI-linked options for foreign visitors, and mandates escrow, reporting, and clearer customer disclosures—while limiting cross-border use.
- PPIs are divided into General Purpose and Special Purpose with stricter caps
- Full-KYC wallets face ₹2 lakh outstanding and ₹25,000 monthly P2P transfer limits
- Non-bank issuers must seek RBI authorisation and meet net-worth thresholds
- Foreign-national PPIs via UPI One World require physical passport and visa verification
Read the full story at Inc42
This summarization was done by Beige for a story published on 
Inc42