⚠ BETA — all market data shown (deals, filings, prices, indices) is demo / illustrative, not live trading data. For evaluation only; verify before acting.
June 14, 2026
The Dispatch

Definition

Prepaid Payment Instrument (PPI)

A Prepaid Payment Instrument is an RBI-regulated wallet, card or voucher that is pre-loaded with money and used for payments up to the stored value.

A PPI holds value you load in advance and lets you spend it on goods, services or transfers. Common forms include mobile wallets, prepaid cards and gift cards. RBI classifies them mainly into small PPIs (minimum-KYC, lower limits) and full-KYC PPIs (higher limits, fund transfers allowed).

Full-KYC wallets can be interoperable through UPI, letting you pay merchants and transfer to bank accounts, whereas small PPIs have tighter caps and restrictions. Issuers must keep customer funds in an escrow account.

PPIs are widely used for transit, gifting and app-based spending; the KYC level you complete determines your limits and whether you can withdraw or transfer the balance.

Related terms

  • UPI LiteUPI Lite is an on-device wallet within UPI apps for low-value payments that works without entering a UPI PIN and, for small amounts, even offline.
  • e-RUPIe-RUPI is a prepaid, purpose-specific digital voucher delivered via SMS or QR that can be redeemed only for a designated service, without needing a card, app or bank account.
  • Video KYCVideo KYC is an RBI-permitted process where customer identity is verified through a live video interaction with an official, allowing fully remote account or loan onboarding.

Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.