What changed
Previously, mobile-based semi-closed prepaid instruments (M-wallets) issued by 'Other Persons' were capped at ₹5,000. Now, the limit has been raised to ₹50,000, aligning with the general semi-closed prepaid instrument guidelines. The conditions prohibiting purchase/reloading via airtime and person-to-person transfers continue to apply.
What it means for you
This change significantly expands the use case for M-wallets, allowing higher-value transactions for goods and services. Banks and non-bank issuers can now offer more competitive digital payment products, potentially increasing adoption. However, the restrictions on airtime reload and P2P transfers remain, limiting some flexibility.
What you must do
- Update product documentation and system limits for M-wallets to reflect the new ₹50,000 cap.
- Ensure customer due diligence (CDD) procedures comply with the monetary ceilings specified in Para 6.4 of the prepaid instrument guidelines.
- Communicate the revised limits to customers and merchants to encourage usage.
- Review internal controls to ensure continued compliance with the ban on airtime reload and person-to-person transfers.
Who it affects
All system providers and system participants, Prospective prepaid instrument issuers, Non-bank entities issuing mobile-based semi-closed M-wallets, Banks offering or partnering for M-wallet services
What is the new maximum value for semi-closed M-wallets?
The maximum value has been increased from ₹5,000 to ₹50,000, aligning with the general semi-closed prepaid instrument guidelines.
Can M-wallets now be reloaded using airtime or talktime?
No, the prohibition on purchase/reloading of M-wallets against airtime/talktime continues to apply.
Are person-to-person transfers allowed with these M-wallets?
No, person-to-person transfer of value is still not permitted. The facility is only for purchase of goods and services.