India, April 23 -- The Reserve Bank of India (RBI) yesterday issued the draft framework to regulate prepaid payment instruments (PPIs).

Called the draft Master Direction on Prepaid Payment Instruments (PPIs), 2026, the proposed rules will look to replace the 2021 master directions and introduce a more structured regime for banks, fintech startups and wallet operators.

As per RBI, the draft rules aim to develop a conducive framework for long term growth of PPIs and strengthen security of transactions via such instruments. The framework, which expands use cases such as UPI-linked wallets for foreign visitors, will be open for public comments till May 22.

The proposed rules define PPIs as a payment instrument in which "money is loaded and...