The Reserve Bank of India (RBI) is revising its framework for Prepaid Payment Instruments (PPIs), which include digital wallets and prepaid cards, to enhance security and customer protection. The proposed measures aim to support the long-term growth of PPIs by introducing stricter transaction security protocols and clearer rules regarding refunds and grievance redressal. The draft Master Direction outlines that general purpose PPIs should not exceed ₹2 lakh at any time, with cash loading capped at ₹10,000 per month. Additionally, gift PPIs will have a maximum value of ₹10,000, while transit PPIs will be capped at ₹3,000. Refunds for failed transactions must be credited immediately to the respective PPI, regardless of whether this exceeds the prescribed limits. The RBI has emphasized transparency, requiring PPI issuers to disclose all features and charges in simple language. Furthermore, agents of PPI issuers are prohibited from charging customers extra fees. Non-bank entities wishing to issue PPIs must have a minimum net worth of ₹5 crore and maintain funds in a separate escrow account. Comments on the draft are invited until May 22, 2026.