The Reserve Bank of India (RBI) has released a draft proposal for prepaid payment instruments (PPIs) aimed at enhancing payment options for specific use cases, including domestic transit, gifting, and transactions for foreign nationals and non-resident Indians (NRIs). The new PPIs will be categorized into general purpose and special purpose wallets, with specific regulations governing their use. For instance, full-KYC PPIs will have a balance limit of ₹2 lakh (approximately $2,400 USD) and a monthly transaction cap, while transit PPIs can be issued without KYC verification and will have a maximum balance of ₹3,000 (approximately $36 USD). Additionally, PPIs for NRIs will allow transactions in rupees, with a limit of ₹5 lakh (approximately $6,000 USD) and must be closed upon the holder's visa expiry. The RBI emphasizes that these wallets are designed to complement existing systems like the Unified Payments Interface (UPI) rather than compete with them. The proposal also includes provisions for refunds, customer protection, and issuer requirements, ensuring that users are well-informed about the features and limitations of their PPIs. The RBI's move aims to provide clearer guidelines and enhance the usability of PPIs while maintaining strict regulatory oversight.