Reserve Bank of India (RBI) released a Draft Master Direction on Prepaid Payment Instruments (PPIs), 2026, on Wednesday, April 22, 2026. A major highlight of this draft is the formalization of a dedicated framework for “UPI One World” wallets, specifically designed to ease digital payments for foreign nationals and Non-Resident Indians (NRIs) visiting India.
This move aims to integrate inbound travelers into India’s advanced digital payment ecosystem without requiring them to open a local bank account.
1. Key Features of “UPI One World” Wallets
The RBI has classified these as “Special Purpose PPIs” with specific rules to ensure security and ease of use.
- Eligibility: Available to foreign nationals and NRIs after physical verification of their Passport and Visa.
- Loading Method: These wallets can be loaded using foreign exchange (cash) or through any international payment instrument.
- Usage Limits: The total amount debited from the wallet in a month is capped at ₹5 lakh.
- Merchant-Only Payments: The funds can be used for Person-to-Merchant (P2M) payments across India’s vast UPI network.
- Closure & Refunds: The wallets must be closed upon the expiry of the holder’s visa. Any remaining balance can be converted back to foreign currency or refunded as per the rules.
2. Other “Special Purpose” Wallets
The 2026 draft simplifies the entire prepaid ecosystem by categorizing wallets into two buckets: General Purpose (Full-KYC and Small PPIs) and Special Purpose.
| Wallet Type | Max Limit | Validity / Key Rule |
| Gift PPIs | ₹10,000 | Valid for 1 year; cannot be reloaded with cash. |
| Transit PPIs | ₹3,000 | No KYC needed; specifically for public transport (Bus, Metro). |
| Foreign Visitor (UPI One World) | ₹5 Lakh/month | Requires Passport/Visa verification. |
3. Broader Regulatory Shifts in 2026
The RBI is tightening the “digital safety net” alongside these new features to protect consumers:
- Immediate Refunds: The draft mandates that refunds for failed, rejected, or cancelled transactions must be credited back to the wallet immediately, even if it pushes the wallet over its balance limit.
- Dormancy Rules: To reduce stagnant “lost” money, wallets with no transactions for one year will be marked as inactive and closed after a second year of inactivity if not revived.
- Interoperability: All Full-KYC wallets must be discoverable on third-party UPI apps (like Google Pay or PhonePe) to ensure users aren’t locked into a single provider’s ecosystem.
- Cash Loading Cut: To improve traceability, the monthly limit for loading general-purpose wallets with cash has been slashed from ₹50,000 to ₹10,000.