The document discusses requirements and guidelines for obtaining a prepaid payment instrument license from the Reserve Bank of India (RBI). It outlines the types of prepaid instruments that can be issued, capital requirements for different entities seeking a license, conditions for issuing prepaid payment instruments, documents required for the license application, advantages of prepaid wallets, and the period of validity for a prepaid wallet license.

1. Prepaid
Payments
License
MUDS Management Pvt. Ltd.

2. Consultations
and advisory
for PCI DSS
Compliance.
MUDS Services
Complete support
in business plan
development,
IT Planning, and
Application Filing.
End-to-end
assistance
in obtaining
PP license
from RBI.
Resolution of all
queries regarding
documents and
procedural
requirements.
Advisory on
Wallet Type
(Closed & Semi-
Closed, Open).
1 2 3 4 5
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3. An Overview
A Prepaid Wallet license is a Prepaid payment
instrument that facilitates the purchase of
goods and services, including funds transfer,
against the value stored on such instruments.
The value stored on such instruments
represents the value paid for by the holders by:
 Cash
 Debit to a bank account
 Credit card
MUDS Management Pvt. Ltd.

4. The pre-paid instruments
can be issued as
MUDS Management Pvt. Ltd.
Smart
Card
Magnetic
Stripe Cards
Paper
Vouchers
Any such
instrument
which can be
used to access
the pre-paid
amount
Mobile
Wallets
Mobile
Accounts
Internet
Wallets
Internet
Accounts

5. Classification of Prepaid
Payment Instruments
1
Closed
System Payment
Instruments
2
Semi-Closed
System Payment
Instruments
3
Open
System Payment
Instruments
MUDS Management Pvt. Ltd.

6. Capital and Eligibility Requirements
for Issuing Prepaid Wallet License
2
5
1
3
4
Newly incorporated
entities
Licensed / Scheduled Banks
and Registered NBFCs
All Other
Existing Entities
Non-banking entities
registered under
Companies Act and
applying for authorization
Applicant Companies
with FDI/FII
MUDS Management Pvt. Ltd.

7. Condition to Issue Prepaid
Payment Instrument
The maximum validity
of the prepaid gift
instruments shall
be three years.
01
The maximum value
of each such payment
instrument shall not
exceed Rs. 50,000/-.
02
These instruments
shall not be reloadable.
03
MUDS Management Pvt. Ltd.

8. Condition to Issue Prepaid
Payment Instrument
Cash withdrawal shall
not be permitted for
such instruments.
04
Full KYC of the
purchasers of such
instruments shall
be maintained.
05
The issuer shall
maintain the details of
the persons to whom
such instruments
have been issued.
06
MUDS Management Pvt. Ltd.

9. How Prepaid Wallet is
different from Digital Wallet?
In case of a digital wallet,
your money continues
to remain in your bank
account or credit card.
01
In a prepaid wallet,
the money moves from
your account to either
a merchant’s current
account or an escrow
account depending
on the type of wallet.
02
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10. Documents Required
For Prepaid Wallet License
01
ID Proofs of promoters
in the company.
02
Address proof of the
registered office.
03
Certificate of Company
Incorporation.
MUDS Management Pvt. Ltd.

11. Documents Required
For Prepaid Wallet License
04
Objects of
the company.
05
Documents for
verifying qualification.
06
Experience details
of the management.
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12. Documents Required
For Prepaid Wallet License
07
Details of the
statutory auditors
of the company.
08
Name of
company’s banker.
09
Address of
company’s banker.
MUDS Management Pvt. Ltd.

13. Transfer of
money is
quicker
01
Easy to
carry money
02
No cost of
operation
03
Rewards and
bonuses for
customers
04
Easy to
add money
05
Autopay
features
06
Cashless
wallets
07
No fear to
lose money
08
Advantages of a Prepaid Wallet
MUDS Management Pvt. Ltd.

14. Period of Validity for
Prepaid Wallet License
Prepaid wallet license
issued by RBI has a
minimum validity of 6
months from the date of
issuance to the holder.
01
For non-reloadable
wallets, the transfer of
outstanding amount at
the time of expiry is
permissible for the
new payment issuer.
02
The outstanding balance
of the wallets cannot
be terminated at the
expiry of the license of
wallet instrument.
03
MUDS Management Pvt. Ltd.