{"id":2526,"date":"2021-02-20T10:52:44","date_gmt":"2021-02-20T10:52:44","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=2526"},"modified":"2021-02-20T11:51:51","modified_gmt":"2021-02-20T11:51:51","slug":"procedure-for-prepaid-wallet-license-in-india","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/","title":{"rendered":"Procedure for Prepaid Wallet License in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Since after the\ndemonetisation, the Reserve Bank of India (RBI) has prioritized and given\nspecial importance on the use of digital transfer of money for any cash\npurpose. To ease in transferring money and being proficient in the use of\nmodern technology, the Reserve Bank of India has taken many initiatives and steps\nto make fast payments, and therefore, the payment wallet license or <strong><a href=\"https:\/\/swaritadvisors.com\/prepaid-wallet-license\" class=\"text-primary\">prepaid wallet license<\/a><\/strong>\nwas introduced. This article will discuss about the procedure for prepaid\nwallet license in India.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a54f9564dac5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a54f9564dac5\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Understanding_Prepaid_Wallet\" title=\"Understanding\nPrepaid Wallet\">Understanding\nPrepaid Wallet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Instruments_of_Prepaid_wallet\" title=\"Instruments of\nPrepaid wallet\">Instruments of\nPrepaid wallet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#What_are_the_Types_of_Prepaid_Wallet_in_India\" title=\"What are the\nTypes of Prepaid Wallet in India?\">What are the\nTypes of Prepaid Wallet in India?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Closed_System_Payment\" title=\"Closed System Payment \">Closed System Payment <\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Advantages\" title=\"Advantages:\">Advantages:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Disadvantages\" title=\"Disadvantages:\">Disadvantages:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Semi-Closed_Payment\" title=\"Semi-Closed Payment\">Semi-Closed Payment<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Advantages-2\" title=\"Advantages:\">Advantages:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Disadvantages-2\" title=\"Disadvantages:\">Disadvantages:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Open_System_Wallet\" title=\"Open System\nWallet\">Open System\nWallet<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Advantages-3\" title=\"Advantages:\">Advantages:<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#What_is_the_Eligibility_Criterion_to_Issue_Prepaid_Wallet_License_in_India\" title=\"What is the Eligibility Criterion to Issue Prepaid Wallet License in India?\">What is the Eligibility Criterion to Issue Prepaid Wallet License in India?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Scheduled_Banks_and_Non-_Banking_Financial_Institution\" title=\"Scheduled Banks\nand Non- Banking Financial Institution\">Scheduled Banks\nand Non- Banking Financial Institution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Companies_Incorporated_under_Companies_Act_2013\" title=\"Companies\nIncorporated under Companies Act, 2013\">Companies\nIncorporated under Companies Act, 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Entities_having_Foreign_Direct_Investment\" title=\"Entities having\nForeign Direct Investment \">Entities having\nForeign Direct Investment <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Mobile_Service_Providers\" title=\"Mobile Service\nProviders\">Mobile Service\nProviders<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Capital_Requirements_for_Entities_which_are_eligible_to_Issue_Prepaid_Wallet_License\" title=\"Capital\nRequirements for Entities which are eligible to Issue Prepaid Wallet License\">Capital\nRequirements for Entities which are eligible to Issue Prepaid Wallet License<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Companies\" title=\"Companies\">Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Banks_and_Non-Banking_financial_Companies\" title=\"Banks and Non-Banking financial Companies\">Banks and Non-Banking financial Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#FBI_Entities\" title=\"FBI Entities\">FBI Entities<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Procedure_to_obtain_Prepaid_Wallet_License\" title=\"Procedure to\nobtain Prepaid Wallet License\">Procedure to\nobtain Prepaid Wallet License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Documents_required_for_Prepaid_Wallet_License\" title=\"Documents required\nfor Prepaid Wallet License\">Documents required\nfor Prepaid Wallet License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-prepaid-wallet-license-in-india\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_Prepaid_Wallet\"><\/span>Understanding\nPrepaid Wallet<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Prepaid wallets are financial instruments through which money is transferred in the digital form. The Reserve Bank of India authorizes in granting licenses for prepaid wallet and is responsible for issuing guidelines and rules for it. The prepaid wallet instruments facilitates the purchase of goods or services against the stored value on such instruments such as mobile wallets, internet accounts, mobile accounts, smart cards, paper voucher and etc. the value stored on such instruments means the value paid for by the holders either by debit or cash to a bank account or by credit card.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/how-to-start-a-mobile-wallet-business-in-india\/\">How to Start a Mobile Wallet Business in India?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Instruments_of_Prepaid_wallet\"><\/span>Instruments of\nPrepaid wallet<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Internet accounts<\/li><li>Mobile accounts<\/li><li>Internet wallets<\/li><li>Mobile wallets<\/li><li>Smart cards<\/li><li>Paper vouchers<\/li><li>Magnetic stripe cards<\/li><li>Any other instrument which may be used to access\nprepaid amount<\/li><\/ul>\n\n\n\n<p>Before using\nthese prepaid instruments, an entity is required to obtain the prepaid wallet\nlicense from the RBI. The RBI issues guidelines and make rules at regular\nperiods for the use of prepaid wallet license. All the entities who have\nobtained the prepaid wallet license must abide with these rules. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Types_of_Prepaid_Wallet_in_India\"><\/span>What are the\nTypes of Prepaid Wallet in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The types of prepaid wallet in India are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Types-of-Prepaid-Wallet-in-India.png\" alt=\"Types of Prepaid Wallet in India\" class=\"wp-image-2527\" width=\"443\" height=\"319\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Types-of-Prepaid-Wallet-in-India.png 949w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Types-of-Prepaid-Wallet-in-India-300x217.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Types-of-Prepaid-Wallet-in-India-768x554.png 768w\" sizes=\"(max-width: 443px) 100vw, 443px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Closed_System_Payment\"><\/span>Closed System Payment <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The closed\nsystem wallet is a form of wallet that is offered by the company\/ business\nestablishments to its customers that can be used only for the purpose of\npurchasing on the online platform that the company \/ business establishment\nusually operates on. The withdrawal of cash or cash redemption is not permitted\nfrom these apps. For example, Ola, Myntra etc<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages\"><\/span>Advantages:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>The customer receives cash back and refunds. <\/li><li>The customer can easily purchase goods and\nservices. <\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disadvantages\"><\/span>Disadvantages:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>The redemption and cash withdrawal is not\npermitted from the wallet. <\/li><li>Since this instrument is closes, the balance in\nthe wallet can only be used for the purpose of purchasing on the same platform\nand nowhere else. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Semi-Closed_Payment\"><\/span>Semi-Closed Payment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The semi- closed\npayment is a form of wallet that is used to purchase goods or services and acts\nas a payment instrument but does not permit redemption or cash withdrawal.\nSince, these instruments do not facilitate payments or settlements for third\nparty services, the operations and issues of such instruments are not\nclassified as payment systems. For example, Paytm wallet, Mobikwik etc. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages-2\"><\/span>Advantages:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>It is used for purchasing goods from affiliated\nmerchants. <\/li><li>Money transfer among holders of wallets. <\/li><li>Can be used to purchase from wallet.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disadvantages-2\"><\/span>Disadvantages:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>Withdrawal of money is not possible in this type\nof wallet. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Open_System_Wallet\"><\/span>Open System\nWallet<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The open system\nwallet is a form of wallet that covers all the disadvantages of the closed and\nsemi- closed system. Such form of wallet can be used to buy goods or services\nand also allows withdrawing cash at an ATM. For example, Master Card, Visa\nCard, Rupay Card etc. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages-3\"><\/span>Advantages:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul><li>Such form of wallet can be used to withdraw\ncash. <\/li><li>Is used to purchase goods or services by swiping\na card. <\/li><li>Is used at the PoS machine to make payments. <\/li><li>It is used for internet and mobile banking. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Eligibility_Criterion_to_Issue_Prepaid_Wallet_License_in_India\"><\/span>What is the Eligibility Criterion to Issue Prepaid Wallet License in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Eligibility-Criterion-to-Issue-Prepaid-Wallet-License.png\" alt=\"Eligibility Criterion to Issue Prepaid Wallet License in India\" class=\"wp-image-2528\" width=\"338\" height=\"342\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Eligibility-Criterion-to-Issue-Prepaid-Wallet-License.png 985w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Eligibility-Criterion-to-Issue-Prepaid-Wallet-License-296x300.png 296w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Eligibility-Criterion-to-Issue-Prepaid-Wallet-License-768x780.png 768w\" sizes=\"(max-width: 338px) 100vw, 338px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Scheduled_Banks_and_Non-_Banking_Financial_Institution\"><\/span>Scheduled Banks\nand Non- Banking Financial Institution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Those banks\nwhich are granted permission from the Reserve Bank of India (RBI) to provide\nmobile banking transactions shall be allowed to launch mobile based prepaid\nwallet instruments. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies_Incorporated_under_Companies_Act_2013\"><\/span>Companies\nIncorporated under Companies Act, 2013<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Such companies that\nare incorporated under the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\">Companies Act, 2013<\/a>\ncan issue a prepaid wallet only is allowed as per the object clause of the Memorandum\nof Association (MOA).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Entities_having_Foreign_Direct_Investment\"><\/span>Entities having\nForeign Direct Investment <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Those entities\nhaving a minimum capital in accordance with the Foreign Direct Investment\npolicy guidelines of Government of India are eligible to issue prepaid wallet\nlicense. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mobile_Service_Providers\"><\/span>Mobile Service\nProviders<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The mobile\nservice providers are allowed to issue mobile prepaid value. Such value can be\nused to purchase talk time and shall be restricted only to the purchase of\nvalue added services or digital contents which are used in mobile phones. The buying\nof other goods or services will not be allowed by using such prepaid value. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_Requirements_for_Entities_which_are_eligible_to_Issue_Prepaid_Wallet_License\"><\/span>Capital\nRequirements for Entities which are eligible to Issue Prepaid Wallet License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies\"><\/span>Companies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Those entities\nregistered under the Companies act, 2013 having primary objective of financial\nbusiness looking for prepaid wallet authorization should have a <strong>minimum net worth of Rs. 5 crore.<\/strong> <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Banks_and_Non-Banking_financial_Companies\"><\/span>Banks and Non-Banking financial Companies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Those entities\nthat meet the capital adequacy requirements prescribed by the RBI shall be\nallowed to issue prepaid wallet instrument. Such requirements are needed to be\nfulfilled from time to time. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FBI_Entities\"><\/span>FBI Entities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Those entities\nwhich are governed by the Foreign Exchange Management Act (FEMA) who are\nauthorized to issue foreign exchange, prepaid wallets are exempted from the\ninfluence of these guidelines. The use of payment wallets shall be permitted\nand limited to the current account transactions only and must be in accordance to\nthe restrictions and limits prescribed under the Foreign Exchange Management\n(Current Account Transactions) Rules, 2000 as amended from time to time. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_to_obtain_Prepaid_Wallet_License\"><\/span>Procedure to\nobtain Prepaid Wallet License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Step 1:<\/strong>\n<strong><a href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\" class=\"text-primary\">Formation\nof company<\/a><\/strong> in accordance with the Companies Act, 2013 by applying to\nthe registrar of companies.<\/li><li><strong>Step 2:<\/strong>\nApplication is required to be filed for approval in <strong>Form A<\/strong> in accordance with the regulation 3(2) of the <strong>Payment and Settlement Systems Regulations,\n2008<\/strong> along with the prescribed fee to the Reserve Bank of India for grant\nof the prepaid wallet license.<\/li><li><strong>Step 3:<\/strong>\nThe RBI will perform a basic screening process to ensure the prima facie\neligibility of the applicant.<\/li><li><strong>Step 4:<\/strong>\nOnce the eligibility criteria and other conditions are fulfilled, the Reserve\nBank of India shall issue an \u201cin- principle\u201d approval. The validity of the\napproval shall be 6 months from the date of granting such approval.<\/li><li><strong>Step 5:<\/strong>\nThe company is required to submit a satisfactory system audit report to the\nReserve Bank of India within the <strong><em>6 months<\/em><\/strong> failing of which the \u201cin-\nprinciple\u201d approval granted by the Reserve Bank of India will eventually lapse\nand the company can appeal for an extension of the 6 months in advance in\nwriting, specifying the valid reasons.<\/li><li><strong>Step 6:<\/strong>\nAfter considering all the particulars that were furnished, the entities shall\nbe granted final approval. The company shall commence business within the <strong><em>6\nmonths<\/em><\/strong> from the grant of the Authorization Certificate.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_Prepaid_Wallet_License\"><\/span>Documents required\nfor Prepaid Wallet License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Proof of registered office<\/li><li>Incorporation certificate<\/li><li>Status of the applicant<\/li><li>The company\u2019s detailed report regarding its\nprinciple business<\/li><li>Details regarding the management of the company<\/li><li>Latest audit balance sheet<\/li><li>Statutory audit report<\/li><li>Payment system details with technology,\ninteroperability, process flow and security features<\/li><li>Name, address and details of the bankers of the\ncompany<\/li><li>Proposed capital amount<\/li><li>Benefits expected to the Indian Financial system\nfrom the company<\/li><li>Funding sources<\/li><li>Any other information that is required by the\nReserve Bank of India<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are many advantages of the prepaid wallets as it has become the new way of money transfer for any purposes of the customers. Such wallets ease the transaction process while buying any goods or services and are available 24* 7 for the people. The procedure for prepaid wallet license in India is discussed above in the article and once the prepaid wallet license is obtained by the entities there are no extra charges for the activation and utilization of such wallets.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/how-to-start-a-prepaid-wallet-license-business-in-india\/\">How to Start a Prepaid Wallet License Business in India?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Since after the demonetisation, the Reserve Bank of India (RBI) has prioritized and given special importance on the use of digital transfer of money for any cash purpose. To ease in transferring money and being proficient in the use of modern technology, the Reserve Bank of India has taken many initiatives and steps to make [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":2529,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[62,56],"tags":[409],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2526"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=2526"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2526\/revisions"}],"predecessor-version":[{"id":2541,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2526\/revisions\/2541"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/2529"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=2526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=2526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=2526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}