The Reserve Bank of India (RBI) has introduced draft guidelines that could significantly impact the digital payments sector, particularly mobile wallets and prepaid payment instruments (PPIs). Proposed limits include capping person-to-person monthly fund transfers at ₹25,000 (approximately $300 USD) and reducing cash loading limits from ₹50,000 to ₹10,000 (approximately $120 USD). These changes have raised concerns among industry leaders, who fear that such restrictions could stifle growth and eliminate various business opportunities. Executives from digital payment companies are organizing to present their feedback to the RBI through the Payments Council of India within the next two days.

The guidelines also suggest that minimum KYC wallets will only be permitted for purchasing goods and services, effectively barring them from remittance transactions. This could severely disrupt the wallet-based domestic remittance industry. Despite the popularity of the Unified Payments Interface (UPI), industry insiders worry that the lack of interoperability for wallets could hinder their growth. In March alone, digital wallets facilitated 695 million transactions worth ₹22,448 crore (approximately $2.7 billion USD), reflecting a significant increase from the previous year. The RBI's stringent measures appear to be a response to concerns over fraudulent activities linked to minimum KYC wallets and a desire to reinforce the role of banks in the payments landscape.