These instructions are part of the Reserve Bank of India’s (RBI) Master Direction on PPIs (2026) that replaces the 2021 framework. Here are the key features of the RBI’s Master Direction on PPIs.
1. Changes and restriction on full KYC PPIs
A full-KYC PPI will be issued after completing a customer’s due diligence (CDD) process, in accordance with MD (master direction) on KYC. A full-KYC will have the following features.
An issuer can issue only one such PPI to a holder at any point in time.
Such a PPI should have a minimum validity of one year from the date of issuance.
The amount outstanding in such PPI can’t exceed Rs 2,00,000 at any point of time.
The total amount debited from such PPI during a month should not exceed Rs 2,00,000.
Person to Person (P2P) fund transfers from such PPI (to a bank account or to other PPI) should be limited to Rs 25,000 per month.
Cash loading in such PPI should be limited to Rs 10,000 per month.
How small PPIs will change
In case CDD customer due diligence could not be carried out in accordance with MD on KYC, a small PPI can be issued after obtaining minimum details of the customer.
A small PPI is valid for two years from the date of issuance and can be converted into a full-KYC PPI during its validity period.
At any point of time, the outstanding amount in a small PPI can not exceed Rs 10,000.
Total amount debited from a small PPI during any month should not exceed Rs 10,000.
Changes in gift PPI
Valid for one year, the maximum value of a gift PPI is Rs 10,000. Cash-withdrawal or Person to Person (P2P) fund transfers are not permitted for such PPI.
Restrictions on transit PPI
The amount outstanding in such PPI should not exceed Rs 3,000 at any point of time.
Withdrawal, refund or transfer of funds are not permitted in such PPI.
2. Limits on PPIs for foreign nationals/Non-Resident Indians (NRIs) visiting India – UPI One World
A PPI wallet is issued to foreign nationals/NRIs after the physical verification of passport and visa, for making Person to Merchant (P2M) payments during their stay in India.
Issued against foreign exchange, the total amount debited from such PPI during any month should not exceed Rs 5 lakh.
3. Overall PPI uses and restrictions
A PPI can 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. A PPI can’t be issued in the form of a paper voucher.
A PPI may be loaded by debit to a bank account or another PPI, or by cash, unless specified otherwise. A special purpose PPI can be loaded by a credit card as well.
A bank PPI issuer may load PPI through business correspondents.
4. Customer grievance redressal framework: A must for issuers
A PPI issuer should disclose all features of PPI, and all associated charges, validity period and terms and conditions in clear and simple language to the holder while issuing the PPI.
A PPI issuer should put in place a formal, publicly disclosed customer grievance redressal framework, including designating a nodal officer to handle the customer complaints or grievances.
PPI users can approach the RBI Ombudsman for complaints.
5. Expiry, closure & refunds of PPI
A transit PPI with no financial transaction for a consecutive period of one year will be classified as inactive.
A PPI issuer needs to notify a PPI holder (via SMS or e-mail or any other means) during the 45 days’ period prior to the expiry or the PPI becoming inactive.
A PPI can also be closed on request of the PPI holder at any time.
The outstanding balance in a PPI will be transferred ‘back to source account’ or to a verified bank account of a PPI holder, if available, whenever a PPI expires, becomes inactive, is closed by the holder, or the PPI issuer voluntarily surrenders the certificate of authorisation, whichever is earlier.
6. Users to get refund of failed transactions immediately
Refunds in case of failed, returned, rejected, or cancelled transactions will be applied to the respective PPI immediately, even if such refunds end up exceeding the prescribed limits for that specific PPI category.
Refunds of transactions done using any other payment instrument will not be credited to a PPI.
7. PPI issuer should facilitate interoperability with PPI
A PPI issuer should facilitate interoperability with card network or Unified Payments Interface (UPI) to a holder of a full-KYC.
A full-KYC PPI can be used across different payment systems/apps.