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RBI plans new wallets for foreign visitors, travel, gifting
23 Apr 2026

The Reserve Bank of India (RBI) has proposed a new category of prepaid payment instruments (PPIs) in its latest draft paper.

The proposal seeks to introduce special-use wallets for specific purposes such as domestic transit, gifts, and transactions by foreign nationals or non-resident Indians (NRIs) in India.

However, the use of PPIs for cross-border transactions will continue to be prohibited.

What are PPIs?
PPI explained

PPIs are digital wallets that allow users to load money and use it for making payments.

They are currently divided into two categories: full-KYC wallets, which require strict identity verification, and small wallets with simpler onboarding rules.

"A PPI may be issued as a card, wallet, or in any such form/instrument which can be used to access the PPI and to use the amount therein. No PPI shall be issued in the form of a paper voucher," said RBI.

Two categories of PPI wallets
PPI categories

The RBI draft proposes to classify PPI wallets into 'general purpose' and 'special purpose' categories.

The general purpose category includes full-KYC PPIs and small PPIs, while the special purpose category includes gift PPIs (non-reloadable for gifting), transit PPIs (for public transport payments), and NRIs/foreign nationals' PPIs (for rupee-based transactions in India).

Any other specific-purpose PPI may be allowed with prior approval from the RBI.

Limits and conditions for full-KYC and small PPIs
PPI regulations

The RBI draft also lays down limits and conditions for different types of PPIs.

Full KYC PPIs can be issued for a year with a total balance and monthly transaction limit of ₹2 lakh.

Person-to-person fund transfers between PPIs or to bank accounts will be capped at ₹25,000 per month.

Small PPIs can be issued for up to two years with a maximum balance and monthly transaction limit of ₹10,000.

Key features of gift, transit, and foreign national/NRI PPIs
PPI specifics

Gift PPIs will have a maximum value of ₹10,000, can't be purchased with cash, and will be valid for one year.

Transit PPIs can be issued without KYC verification, have perpetual validity, and a maximum outstanding balance limit of ₹3,000 without withdrawal/transfer/refund facilities.

NRIs/foreign nationals' PPIs can be used under NPCI's 'UPI One World' facility for person-to-merchant payments in India.

Who can issue PPIs?
PPI issuance

All banks permitted to issue debit cards can issue PPIs, while non-bank entities need RBI's authorization.

Non-bank applicants must have a minimum net worth of ₹5 crore and attain a minimum net worth of ₹15 crore by the end of the third financial year of authorization.

Customers can load their PPIs from their bank account, another PPI or using cash unless specified otherwise in the RBI draft.