PPI

Digital Wallets — Mobile Wallets: Complete 101 Guide Last updated: March 2026 What are Digital Wallets? Digital wallets (Prepaid Payment Instruments - PPI) are virtual wallets that store money digitally, enabling online and offline transactions without linking to a bank account directly. Types of Wallets Type Description Examples Closed Wallet Single merchant Amazon Pay, Flipkart Pay Semi-Closed Multiple merchants Paytm, FreeCharge Open Wallet Bank-linked PhonePe, Google Pay How Digital Wallets Work Adding Money Link bank account/debit card KYC verification (minimum/full) Add money to wallet Start transacting Transaction Flow 1 Wallet → Merchant → Settlement → Bank KYC Requirements Type Limit Requirements Minimum KYC ₹10,000/month Mobile, email Full KYC ₹2,00,000/year Aadhaar, PAN Features Instant payments Bill payments Recharges Merchant payments Financial services (loans, insurance) Consumer Rights Wallet balance protection (RBI guidelines) Refund for unauthorized transactions KYC data protection Transparent fee disclosure