The Reserve Bank of India (RBI) has granted in-principle authorisation to Junio Payments Pvt Ltd to issue Prepaid Payment Instruments (PPIs), paving the way for a UPI-linked wallet aimed at children and teenagers.
The wallet will allow users—particularly minors who do not have their own bank account—to make digital payments by scanning any UPI QR code, similar to regular UPI users
How It Works
- Parents can link the minor’s wallet to their own UPI/bank flows and transfer pocket money, set spending limits, monitor transactions in real time.
- The wallet will support UPI payments (QR-scan) even without the minor having a bank account.
- The fintech currently offers physical or virtual RuPay-branded cards (for kids) and will extend to UPI integration under this approval.
Why This Matters
- This move aligns with the broader push for digital payments and financial inclusion in India: more youth are brought into the digital ecosystem early.
- It embeds financial literacy: tools like gamified savings goals, parental controls, and real-life usage give minors experience managing money responsibly. NewsBytes
- It shows regulatory confidence by RBI in youth-oriented fintech products under the PPI/UPI framework.
Things to Consider & Potential Risks
- While “in-principle” approval is granted, full rollout depends on compliance with PPI/UPI guidelines, KYC, AML rules and operational readiness.
- Parental oversight will be critical to ensure responsible usage, avoid misuse or excessive spending by minors.
- Data privacy, age-appropriate interfaces and safeguarding will be important given minors are involved.
- Though payments are enabled, credit or borrowing features seem excluded; misuse risk remains if controls are weak.
Conclusion
The RBI’s approval of a UPI-linked wallet for minors marks a significant development in India’s fintech and payments landscape. By enabling children and teens to transact in a controlled environment, it opens new avenues for financial education, digital payments adoption and fintech innovation. How effectively the rollout happens, and how responsibly the product is used, will determine its long-term impact.
