Softbank and Tiger Global-backed Revolut India, has been granted in-principle approval by the Reserve Bank of India (RBI) to issue Prepaid Payment Instruments (PPI). This includes prepaid cards and wallets, as CEO Paroma Chatterjee announced in a recent LinkedIn post.

The new license complements Revolut India’s existing licenses from the RBI, allowing the company to function as a Category-II Authorised Money Exchange Dealer (AD II) for issuing multi-currency forex cards and providing cross-border remittance services.

Chatterjee expressed the significance of this milestone, highlighting the opportunity to offer both international and domestic payment solutions on a unified platform for Indian consumers.

Initially entering the Indian market in 2021, Revolut aims to challenge established players in the domestic payments sector. The approval from the RBI is expected to further solidify Revolut’s position as a major contender in this domain.

Prepaid Payment Instruments (PPIs) are tools or instruments for transactions that use stored monetary value, such as digital wallets, smart cards, or vouchers.

Furthermore, RBI governor Shaktikanta Das proposed the linkage of PPIs through third-party UPI applications on 5 April, 2024, allowing PPI holders to make UPI payments akin to bank account holders.

Chatterjee emphasised Revolut’s commitment to full compliance with all regulatory requirements, particularly the extensive localisation of the global tech-stack for India in order to adhere to local regulations.

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