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Payment Wallet License or Prepaid Wallet Licence

Payment services operated under financial regulation and performed from or via mobile is known as Mobile payment wallet. Mobile payment wallet also referred to as mobile money, mobile money transfer and mobile wallet.

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Introduction to Payment Wallet

Payment services operated under financial regulation and performed from or via a mobile is known as Mobile payment wallet. Mobile payment wallet also referred to as mobile money, mobile money transfer and mobile wallet.

RBI is regularity and issuing authority for Payment wallet license or prepaid payment wallet license in India.

RBI is responsible for issuing guidelines and rule for prepaid payment wallet and responsible for granting the incense.

 

Types of Payment Wallets or Prepaid Wallets

Prepaid or payment wallets have been classified into four categories by the RBI:

A. CLOSED SYSTEM PAYMENT

B. SEMI-CLOSED SYSTEM

C. OPEN SYSTEM


➲ Closed system payment:

It is a wallet which is issued by a company to a consumer for buying goods and services exclusively from that company. Example: Amazon, Cleartrip etc

You can use this

a. To receive refunds for receive and receive cashback

b. You can do purchasing

Semi-closed PPIs can further be classified into the following three types:

i. PPIs upto ₹ 10,000/- where minimum details of PPI holder are obtained (minimum-detail PPI)

ii. PPIs upto ₹ 10,000/- with loading only from bank account

iii. PPIs upto ₹ 1,00,000/- where KYC of PPI holder is completed (full-KYC PPI)


➲ Open system payment:

It is used to purchase of goods and services and also permit cash withdrawal at ATM. Example- Visa card, Master card, Rupay card.

You can use this

a. For cash withdrawal at ATM

b. Payment(s) made on purchase of goods and services by swiping card(s)

c. Use through POs machine for making payment

➲ Semi-Closed system payment:

Semi-closed wallets refer to those wallets that can be used to purchase goods and/or services as such a wallet is a payment instrument that are redeemable of clearly identified merchant that contract specifically with the issuer to except the payment instrument. Example- Paytm, Mobikwik, Freechare etc.

You can use it

a. Pay to affiliated merchant for purchasing goods

b. Purchase from wallet issuer

c. transfer money

Eligibility for Payment Wallet Licence or Prepaid Wallet Licence

➲ Non-Bank Finance Companies (NBFC) and banks, who comply with the eligibility criteria, would be   permitted to issue all categories of prepaid payment instruments.

➲ Certain banks have been permitted by the Reserve Bank of India to provide Mobile Banking Transactions by. Such banks shall be permitted to launch mobile based prepaid payment instruments (mobile wallets & mobile accounts)

➲ In other cases, entities would be permitted to issue only closed system prepaid payment instruments and semi-closed system prepaid payment instruments

Minimum Capital Requirements for Payment Wallet License

➲ Commercial Banking institutions and NBFC’s (Non-Bank Finance Companies) which comply with the Capital Adequacy requirement laid down by the Reserve Bank of India from time-to-time shall be permitted to issue prepaid payment instruments.

➲ Entities other than a bank or NBFC shall have a minimum net owned funds of Rs 5 crores in order to attain a prepaid wallet license.

Documents Required for Prepaid Wallet License

➲ Name of the applicant Entity

➲ Constitution of the applicant Entity

➲ Address proof of registered office of the business

➲ Certificate of Incorporation 

A detailed report of the principle business of the company

➲ Benefits expected to the Indian Financial system from the company

➲ List of Directors and List of Shareholders

Details of statutory auditor of Company

➲ Quantum of capital proposed

➲ Details of sources of funds

Latest audited balance sheet of the Company

➲ Payment system details with process flow, technology, security features and interoperability

➲ Details of Bank Account and Bankers of Company

➲ Any other documents as may be required

Steps for getting a Prepaid Wallet Licence

1st STEP:

 Incorporation of the Company under the Company act, 2013 with main objects in consonance with that of a prepaid payment instrument.

2nd STEP:

Preparation and filing of Application for Payment Wallet Licence in Form A with the payment of adequate fee as prescribed under the Payment and Settlement System Regulations, 2008.

3rd STEP:

The application so filed undergoes the process of initial scrutiny of the application by the RBI to ensure the correctness of the application and the attachments filed and eligibility of the Company and its promoters and directors.

4th STEP:

 Subject to completion initial scrutiny to the satisfaction of the RBI, the designated office of the Reserve Bank of India issues an ‘in-principle’ approval which shall be valid for 6 months.

5th STEP:

The entity receiving the “in-principle” shall mandatorily submit a Systems Audit Report to RBI within these 6 months, otherwise, the in-principle approval shall be deemed to lapse on expiry of 6 months. There is a provision to obtain a one-time extension of six months by such applicant, which shall be approved only if there is a genuine reason for the delays caused. The RBI has the discretion to the accept or decline such request for extension based on the reasons stated.

6th STEP:

If the RBI is of the view that the specifics and facts provided by the applicant in the application are satisfactory and as per the respective provisions, the RBI grants the Certificate of Registration to the applicant within the six months of in-principle approval. However, if the Certificate of registration is not granted, then the in-principal approval shall lapse at the completion of 6 months. The Certificate of Registration granted by the RBI is valid for 5 years and shall be subject to a periodic review

How does CORPZO help you in getting Payment Wallet Licence?

  • Connect with us at +91 99991 39391
  • Our expert advisor(s) will understand your requirements and advise accordingly.
  • We will collect your documents and information which will be required for incorporation
  • One person from our team of professionals will get in touch with you for getting more information and documentation if required.
  • Finally, our professionals will draft your application and submit it with the RBI for getting the Payment Wallet Licence.
  • STAGE 1

    CONNECT WITH US

    We are just a call or message away!

    Call or WhatsApp us on +91-99991-39391 for free consultation from our team of experts. You can also email us on reach@corpzo.com.

  • STAGE 2

    PROCESS AND DOCUMENTATION

    Your consent is essential!

    We share the detailed and reasonable estimated costs, documents and prerequisites for the complete process before starting the process to ensure transparency.

  • STAGE 3

    SHARE YOUR DOCUMENTS

    We ensure timelines are met!

    Our team warrants hassle free documentation. We collect the necessary documents and share the relevant drafts to ensure a timely filing and delivery.

  • STAGE 4

    PROCESSING AND UPDATE

    Precision is our speciality!

    Upon collecting the necessary documents and information, we waste no time in preparation and filing of your application. development on your application is brought to your attention.

  • STAGE 5

    SUCCESSFUL COMPLETION

    We deliver what we commit!

    On successful completion of the case we share all the relevant documents electronically and physically along with an assurance to pay you back if something is wrong.

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