Full-KYC PPI
Full customer due diligence (Aadhaar/PAN, address proof, sometimes income source). Highest limits, P2P allowed, UPI/card-network interoperability being rolled out. Only one per holder.
The regulation desk: RBI prepaid card limits & KYC tiers
PPIs are a regulated-payments product, not a generic "best cards" blog topic. Here is the current framework as of September 2026, the 2026 overhaul, and exactly how to verify any number before you rely on it.
Where prepaid cards live in Indian law
One word to know: PPI
In India, a prepaid card is a Prepaid Payment Instrument (PPI). PPIs sit under the Payment and Settlement Systems Act and the RBI's PPI Directions. The 2021 Master Direction is being replaced by a 2026 framework (draft issued April 2026 for comments) that regroups instruments into:
- General purpose PPIs — Full-KYC and Small (minimum-detail) PPIs.
- Special purpose PPIs — Gift, Transit, and PPIs for visiting foreign nationals / NRIs.
- Closed-loop instruments — usable only at the issuer (a store gift card). Usually not a payment system and not RBI-authorised if they never pay third parties.
Important: until the 2026 Direction is fully in force and every issuer has migrated, an issuer may still be on the 2021 limits. Always confirm the current number with the issuer before relying on it.
Current PPI limits at a glance
As of September 2026 (2026 draft framework). Verify with the issuer — these are the numbers quoted by RBI but individual products can differ.
| Instrument | Outstanding cap | Other hard rules (2026 draft) |
|---|---|---|
| Full-KYC PPI | ₹2 lakh | Monthly debit ₹2 lakh; P2P ₹25,000/month; cash load ₹10,000/month; minimum 1-year validity; only one such PPI per holder. |
| Small PPI | ₹10,000 | Tight KYC; no P2P or cash withdrawal; max 2 years; convertible to Full-KYC. |
| Gift PPI | ₹10,000 | Non-reloadable; no cash or P2P; typically 1-year validity; cannot be bought with cash. |
| Transit PPI | ₹3,000 | No withdrawal, refund or transfer; low or no KYC. |
| Foreign national / NRI PPI | — | Passport + visa verification; monthly debit up to ₹5 lakh; closed on visa expiry. |
KYC tiers
Who can hold what — and how much KYC
Small PPI
Minimum-detail KYC. ₹10,000 cap, no P2P, no cash withdrawal. Great for quick reloads but not a wallet for transfers. Converts to Full-KYC when you upgrade.
Gift & Transit
Lighter or no KYC because usage is locked (one brand / one transit network). Gift PPIs can't be bought with cash; transit PPIs can't be withdrawn or refunded.
Who can issue a PPI
- Banks — can issue PPIs with intimation to the RBI.
- Authorised non-banks — must follow the net-worth path (₹5 crore, rising to ₹15 crore under the 2026 draft) and apply for authorisation.
- Closed-loop merchants — a store that only accepts its own gift card is a different animal: usually no RBI authorisation needed because it never pays third parties.
Open vs semi-closed vs closed: open-loop (Visa/Mastercard/RuPay, often ATM-capable) is mostly a bank product; semi-closed wallets/cards work at a defined merchant set; closed-loop is one brand. Mixing these up is the #1 content error on prepaid-card sites.
Interoperability: where can I use it?
Full-KYC PPIs are being pushed onto UPI and card networks. That changes the honest answer to "where can I use this card?" — a Full-KYC card may work on UPI and at card-network merchants, while Small, Gift and Transit PPIs generally stay closed to those rails. Always check the issuer's current interoperability status.
Escrow, expiry and refunds
Outstanding value sits with the issuer under RBI rules — not as a DICGC-insured bank deposit. Issuers must give expiry notice, refunds are "back to source", and refunds from other instruments generally cannot be parked on a PPI. If a card expires with a balance, see our how-to on expired balances.
How to complain about a prepaid card
- Issuer first. Contact the issuer's customer care and grievance desk. Keep the transaction reference and complaint number.
- Internal Ombudsman. Large non-bank PPIs must have an Internal Ombudsman — escalate if the first response doesn't resolve it.
- RBI Ombudsman. If still unresolved, file with the RBI Ombudsman for Digital Payments (or the Ombudsman Scheme for Digital Transactions) online at cms.rbi.org.in.
Tip: complaints must usually be filed within a year of the cause of action. Keep a paper trail — screenshots, emails, complaint IDs.
Change log — why a stale article destroys trust
RBI PPI text, the KYC Master Direction, e-mandate rules and authentication directions all moved in 2025–26. A page quoting the old "₹1 lakh cap" will mislead readers and kill topical authority. We track dated updates here:
| Date | Change |
|---|---|
| April 2026 | Draft PPI Direction issued for comments (replaces 2021 Master Direction); Full-KYC cap proposed at ₹2 lakh. |
| 2025–26 | Interoperability push: Full-KYC PPIs enabled on UPI and card networks in phases. |
| 2021 | PPI Master Direction (current baseline for issuers yet to migrate). |
Regulation FAQs
A Full-KYC PPI requires full customer due diligence and can hold up to ₹2 lakh outstanding with P2P transfers and UPI/card interoperability. A Small PPI uses minimum-detail KYC, is capped at ₹10,000, and cannot do P2P or cash withdrawal.
Only within limits. A Full-KYC PPI allows cash loading up to ₹10,000/month. Gift PPIs cannot be bought with cash at all, and transit PPIs have no cash-loading path.
No. Outstanding value sits with the issuer under RBI escrow rules and is not covered by DICGC deposit insurance. It is stored value, not a savings deposit.
Start at the RBI's Master Directions and circulars on rbi.org.in, then check the issuer's own fee and limit PDFs. We always link primary sources.
Disclaimer: Informational content only — this site does not issue PPIs and is not financial or legal advice. Limits and rules are set by the RBI and the issuer; always verify the current text before relying on any number.