👛 What is a Prepaid Wallet License?
A Prepaid Wallet License is a regulatory approval issued by the Reserve Bank of India (RBI) under the Payment and Settlement Systems Act, 2007. It authorizes companies to issue and operate Prepaid Payment Instruments (PPIs) such as mobile wallets, gift cards, or digital cards that store monetary value.
PPIs are regulated as per the Master Direction on Issuance and Operation of PPIs by the RBI.
PPIs can be of three types:
- Closed wallets: Used only within the issuer’s platform (e.g., Ola Money).
- Semi-closed wallets: Used by many merchants (e.g., PhonePe).
- Open wallets: Allow cash withdrawal and full access (offered only by banks).
Obtaining this license is crucial for any fintech company or startup planning to offer digital payment solutions in India.
Ready to make an impact in India's booming finance sector?
Why You Need a Prepaid Wallet License 🔐
With initiatives like Digital India and widespread UPI integration, having a wallet license offers numerous advantages:
✅ Legal authorization to issue wallets
✅ Enhanced brand credibility and consumer trust
✅ Direct integration with UPI, banking APIs, and card networks
✅ Full control over the user payment ecosystem
✅ Opportunity to integrate cashback, incentives, and loyalty programs
✅ Access to rich consumer transaction data
This license is not just about compliance — it’s a strategic asset for scaling your fintech or e-commerce business.
Who Should Apply? 🎯
The Prepaid Wallet License is ideal for:
- Fintech startups & digital payment platforms
- Ride-hailing apps & food delivery companies
- Gaming and entertainment apps
- Neo-banking & NBFC platforms
- Retail chains and super apps
If you’re planning to store customer funds digitally and enable payments, you’re required to register under the RBI’s PPI framework.
Eligibility Criteria 📋
To apply for the license, you must:
✅ Be a company registered in India.
✅ At the time of application, keep your paid-up capital at ₹5 crore.
✅ Keep your net worth at one crore rupees.
✅ Submit detailed business plans and technical documentation.
Documents Required 📑
You’ll need to prepare and submit:
Certificate of Incorporation
PAN, GST, and MOA/AOA
Board resolution and shareholding structure
Audited financials (past 3 years if applicable)
Business plan and product architecture
IT security policy, fraud risk management framework
Details of Directors/Promoters, their KYC, and net worth
At Marcken Consulting, we help ensure that your documentation is complete, audit-ready, and aligned with RBI’s expectations.
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Step-by-Step Process 🧭
Here’s a list of documents we’ll help you prepare:
1. Incorporation of the Company
Register your business with the MCA.
2. Capital Infusion
Ensure you meet the ₹5 crore paid-up capital and ₹1 crore net worth requirement.
3. Application Preparation
Compile business model, risk policies, technical infrastructure, and KYC/AML guidelines.
4. Filing Application with RBI
Submit your proposal via the COSMOS portal. This includes form submissions and soft copies of the business model.
5. RBI Review
RBI may raise queries or request clarifications. Our experts assist you in handling those efficiently.
6. In-Principle Approval
After satisfaction, the RBI grants a six-month in-principle license.
7. System Audit & Go-Live
You must undergo a third-party IT audit, demonstrating operational readiness. After the audit, the RBI will provide the final approval.
Post-License RBI Compliance 📊
Even after getting licensed, you must:
- Submit quarterly and annual compliance reports
- Conduct regular IT & cybersecurity audits
- Follow updated KYC/AML/CFT policies
- Maintain an active grievance redressal system
- Report suspicious transactions under PMLA
Our ongoing compliance support ensures that you stay aligned with RBI norms, minimizing risk and liability.
Benefits of Having a Prepaid Wallet License 💡
✅ Access to India’s booming digital finance market
✅ Eligibility to integrate with NPCI, UPI, RuPay
✅ Freedom to create multi-use case wallets
✅ Competitive edge in consumer experience
✅ Long-term growth into NBFC, payment bank, or neo-banking ventures
Why Choose Marcken Consulting? 💼
We are one of India’s most trusted names for RBI and SEBI licensing. Here’s what you get:
✅ Expert consultation tailored to fintech and digital finance
✅ Support in raising capital & structuring shareholding
✅ Complete project management — from incorporation to RBI approval
✅ Documentation, IT, audit, and legal support under one roof
We’ve helped dozens of startups and mid-size enterprises secure licenses such as NBFC, Payment Gateway, and more.
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Frequently Asked Questions
Who regulates prepaid wallets in India?
The Reserve Bank of India (RBI) regulates all prepaid wallet providers under the Payment and Settlement Systems Act, 2007. It ensures customer protection, data security, and operational soundness through compliance checks and audits.
What is the validity of a Prepaid Wallet License?
The license remains valid until revoked, provided the company complies with RBI’s reporting and security requirements. Regular audits and risk assessments are mandatory to keep the license active and in good standing.
Can foreign companies apply for the wallet license?
Only Indian-incorporated companies can apply. However, foreign entities can set up wholly-owned subsidiaries or joint ventures in India to apply, subject to FDI and FEMA rules.
What is the timeline for getting the License?
The complete process typically takes 4 to 6 months, depending on application quality, RBI scrutiny, and IT audit clearance. With expert assistance like ours, timelines can be shortened.
Is UPI integration mandatory for wallet operators?
Not compulsory, but highly recommended. UPI boosts wallet interoperability, customer convenience, and helps your platform gain faster adoption. Additionally, it supports India’s drive for instant digital payments.
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