The Reserve Bank of India (RBI) has taken many steps to promote fast-track money transfer. Payment Wallet License is also known as Prepaid Wallet License. Payment Wallet License allows its user to buy items or to make transactions in an easy way using a digital platform. There are five different types of Prepaid wallet License, they are:
Closed system payment instruments;
Semi-Closed system payment instruments;
Semi-Open system payment instruments; and
Open system payment instruments.
Mobile Prepaid Instruments
Before putting Prepaid Wallet Instruments to use it is essential to obtain a License for the same. The Reserve Bank of India (RBI) from time to time issues outlines rules and guidelines related to Prepaid Wallet License. Any non-Bank entity that seeks to obtain a prepaid license must adhere to the given guidelines before applying for a prepaid wallet license.