Regulation-first guide · Updated September 2026

Prepaid cards in India, explained the way the RBI sees them

A prepaid card is a Prepaid Payment Instrument (PPI) — you load money in advance and spend it until it runs out. This site explains the rules, limits, KYC tiers, fees and safety so you can choose the right card without getting misled.

See the current RBI limits Prepaid vs UPI vs credit
₹2 lakhFull-KYC PPI cap
₹10,000Small & gift PPI cap
₹3,000Transit PPI cap
A traveler holding a prepaid payment card at a bright modern lounge Informational · not a PPI issuer
The definitional hub

What is a prepaid card in India?

In India, a prepaid card is one form of a Prepaid Payment Instrument regulated by the Reserve Bank of India under the Payment and Settlement Systems Act and the RBI PPI Directions. You pre-fund the card, then spend it at merchants, online, on UPI (for Full-KYC cards) or abroad — until the loaded value is exhausted.

There is no borrowing (unlike a credit card) and the money is not a bank deposit (unlike a savings account). The outstanding balance sits with the issuer under RBI escrow rules and is not DICGC-insured.

Read the full regulation desk →
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Three kinds of acceptance — don't mix these up

Open-loop

Works anywhere a card network (Visa, Mastercard, RuPay) is accepted, sometimes including ATMs. Mostly a bank product, often Full-KYC.

Semi-closed

Works at a defined set of merchants and websites chosen by the issuer. The most common wallet/card form in India.

Closed-loop

Usable only at the issuer's own store or group. A store gift card is the classic example — usually not a payment system at all.

Choose your job to be done

Explore by what you need

Pick the scenario closest to yours. Every guide follows the same safe skeleton: who it's for, the RBI instrument type, hard limits, fees, where it works, and how to complain.

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Gift cards & gift PPIs

Brand gift cards, RBI gift PPIs, ₹10,000 cap, non-reloadable rules and the ₹15,000 tax exemption for corporate gifting.

Gift card guide →
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Forex / travel cards

Multi-currency prepaid forex cards, FEMA & LRS rules, markup math, and how they compare to credit and debit cards abroad.

Forex card guide →
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Virtual cards

Virtual prepaid cards for online and international checkout — including paying for foreign SaaS services under FEMA.

Virtual card guide →
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Corporate & meal cards

Meal, fuel, incentive and salary/payroll cards — and how PPI rules meet income-tax perquisite rules for HR teams.

Corporate card guide →
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How-to guides

Apply, complete KYC, load, link UPI, freeze, close, and claim refunds after expiry — step by step.

Step-by-step how-to →
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Compare & decide

Side-by-side prepaid vs UPI vs debit vs credit, plus a forex markup calculator for trips abroad.

Comparison tools →
Regulation desk

The limits table you can trust

PPI limits change with RBI circulars — the 2026 overhaul is a draft that will replace the 2021 Master Direction. Until every issuer has migrated, treat quoted numbers as current framework and always confirm with the issuer.

  • Full-KYC PPI — outstanding up to ₹2 lakh; monthly debit ₹2 lakh; P2P ₹25,000/month; cash load ₹10,000/month; only one such PPI per holder.
  • Small PPI — outstanding up to ₹10,000; tight KYC; no P2P or cash withdrawal; convertible to Full-KYC.
  • Gift PPI — ₹10,000; non-reloadable; no cash or P2P; typically one-year validity.
  • Transit PPI — ₹3,000; no withdrawal, refund or transfer; low or no KYC.
Full limits, KYC tiers & grievance path
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Stay safe

Prepaid-card scams are real in India

Fake reload sites, gift-card mule schemes, "cash out wallet" offers and phishing pages that pretend to be your issuer. We keep a standing scam-awareness page and will never list unofficial reload sellers.

Read the scam & safety guide