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Leather Briefcase

Prepaid Wallet Business

  • Limited liability.

  • At least two members.

  • Not more than two hundred members.

  • Restricted rights to transfer shares.

  • A minimum of two directors.

  • No minimum capital requirement (earlier it was Rs. 1,00,000).

  • Compulsory use of the words private limited.

  • Noting the above words in the Memorandum is mandatory


Nowadays there are many prepaid instruments are launching in the market with an increase in digital transactions. Some of the famous prepaid instruments are E-Wallet and Payment Application for Mobile Users.

Now the question is What is E-Wallet: Mobile E-Wallet in simple words is a virtual wallet in which you can keep money with the help of merchant service provider and use this money for selected kind of services like Mobile Recharge, Online Movie Booking, Online bill payment. While Some Companies provides you facility to make payment to a third party or merchant store offline. There are many companies in India who have already launched this type of wallet like Paytm, Airtel Money, Bhim App, etc.

If we categories the wallet on the basis of facilities, there are four types of wallets prescribed in India as per RBI Guidelines:

  1. Open Wallet

  2. Semi-Open Wallet

  3. Semi-Closed Wallet

  4. Closed Wallet

Open Wallet : 

Open wallet facilitates customers to keep money in this wallet and use this money anytime and anywhere i.e. by using this kind of wallet you can make payment online for any purchase of goods and services and also you can withdraw money. Example of Open Wallet is M-Pesa by Vodafone India Ltd in partnership with ICICI Bank Ltd.


Semi-Open Wallet : 


These are wallets which can be used for the purchase of goods and services at any card accepting merchant locations (Point of Sale Terminals). These wallets do not permit cash withdrawal or redemption by the holder.


Semi-Closed Wallet : 


These are wallets which can be used for the purchase of goods and services from only identified and exclusive merchant locations or establishments which contract specifically with the issuer to accept payment wallets, including financial services. This wallet also does not allow to withdraw cash. An example of Semi-Closed wallet is Paytm App and Citrus Cash App.


Closed Wallet: 


A Closed Wallet is issued by a company or establishment for users to purchase goods and services exclusively from that company. This wallet does not allow cash withdrawal. It does not allow make payment at another merchant location for purchasing of goods and services like Airtel money till now allows only to make payment for airtel bill, airtel recharge. 


Licenses and Approvals For issuing of Wallets: 


These wallets are governed by RBI by Payment and Settlement System Act, 2007. Banks, Non-Banks and Companies issuing wallets need to obtain PPI License from RBI. As per existing guidelines by RBI, for Closed Wallets, there is no need of RBI Approvals.


Banks who comply with the eligibility criteria would be permitted to issue all categories of pre-paid payment wallets.


However, only those banks which have been permitted to provide Mobile Banking Transactions by the Reserve Bank of India shall be permitted to launch mobile-based pre-paid payment wallets (mobile wallets & mobile accounts).


Non-Banking Financial Companies (NBFCs) and other persons would be permitted to issue only closed and semi-closed system payment instruments, including mobile phone-based pre-paid payment wallets.

Document Required

Capital Requirements:

Banks and Non-Banking Financial Companies which comply with the Capital Adequacy requirements prescribed by Reserve Bank of India from time-to-time shall be permitted to issue pre-paid payment wallets.

All other persons, seeking authorization henceforth, shall have a minimum paid-up capital of Rs. 500 lakh and minimum positive net worth of Rs. 100 lakh at all times. Necessary instructions, if any, for the existing PPI issuers for compliance of enhanced capital requirements will be notified separately.


Applicant companies having FDI/FII should meet the minimum capital requirement as applicable under Consolidated FDI policy guidelines of the Government of India.

Only companies incorporated in India will be eligible to apply for authorization.

  • Any address proof for directors as well as shareholders (like: Driving License, Passport, or Voter ID)

  • Copy of latest electricity bill, telephone bill, or mobile bill for directors.

  • Occupation of directors as well as shareholders.

  • E-Mail IDs of all directors and shareholders.

  • Phone Numbers of all directors and shareholders.

  • Photographs of all directors and shareholders.

  • Duplicate of rent accord along with No Objection Certificate (NOC) from the landlord (if in case the office premise is rented).

  • Affidavits for non- acceptance.

  • If in case there is a change in the original subscribers of MOA, then the No Objection Certificate (NOC) is also required,

  • Subscriber Sheets of MoA and the AoA.

  • PAN Card of the company.

  • Proof of Nationality which is needed if the subscriber is a foreign national.


Anita Mishra,

Co-Fonder and Director

"Co-Fonder and Director, STGA Consultants is unarguably the best place for any tax-related matter that you might have. I used their service during the peak tax season and was amazingly surprised by the fast responses and turnaround time. Since then I have recommended the service to several friends and family members who have been nothing but delighted by the service."

Keshav Sharma,

Director, Dewans Coffee

“We used to register our Pvt. Ltd. company over the last couple of months. It was not a straightforward process but they made it a smooth ride for us. Their executives were responsive and communicated everything in a timely manner. Highly recommended service for new businesses.”

Anand Aggarwal,

Director, HPT & Co. 

“There were tax demands emanating assessment tax case. As a growing company, you don’t need a gyan company to manage your finance/accounts/taxes, you need someone who knows HOW TO GET THINGS DONE. Anylyz.Com is a problem-SOLVING firm, best for any growing company.”

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