The updated rules apply to all PPI issuers and system participants, with a sharper focus on governance, transparency and interoperability. Non-bank issuers will now need a minimum net worth of ₹5 crore at entry, scaling up to ₹15 crore within three years, while authorisations for payment system operators will be granted on a perpetual basis.
Under the revised framework, full-KYC PPIs will have an outstanding limit of ₹2 lakh, with a matching monthly debit cap. Peer-to-peer transfers are capped at ₹25,000 per month, while cash loading is restricted to ₹10,000. Small PPIs will remain tightly controlled, with a ₹10,000 balance cap and no provision for fund transfers or withdrawals.
The RBI has also mandated interoperability for full-KYC PPIs via card networks or UPI, a move aimed at improving usability across platforms. At the same time, cross-border usage of PPIs has not been permitted.
Customer protection remains a key focus area. Issuers must clearly disclose charges and terms, maintain a grievance redressal mechanism, and fall under the RBI’s Integrated Ombudsman Scheme. Refunds are to be credited immediately to PPIs, even if this leads to temporary breaches of limits.
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On the operational side, non-bank issuers must maintain escrow accounts with scheduled banks, ensuring balances match outstanding liabilities on a daily basis. PPIs will be deactivated after one year of inactivity and closed after another year if not reactivated, with balances transferred back to the source account.
The overhaul signals the RBI’s intent to standardise the fast-growing digital payments ecosystem while tightening risk controls.