ZikZuk Technologies Gets RBI Final PPI Issuer Authorisation
Why in the news
ZikZuk moved from in-principle approval to a full licence, letting it offer RBI-regulated wallets, prepaid cards and stored-value services, and work in UPI and cross-border payments.
Key facts
- Authorisation: final PPI issuer approval under the Payment and Settlement Systems Act, 2007.
- Earlier step: in-principle approval, May 2025.
- Can now offer: digital wallets, prepaid cards, stored-value services, UPI infrastructure integration and cross-border services.
- Framework: RBI Master Directions on PPIs, 27 August 2021, issued under Section 18 read with Section 10(2) of the Act.
- A Draft Master Direction 2026 was released on 22 April 2026, with comments till 22 May 2026; it is not in force.
Eligibility
- Banks permitted to issue debit cards need only prior intimation to RBI DPSS.
- Non-banks must be Indian companies under the Companies Act, 2013, with PPI issuance in the MoA, and must seek authorisation.
- Regulated entities such as NBFCs submit a NOC from their primary regulator within 45 days.
Net worth for non-bank issuers
| Stage | Minimum positive net worth |
|---|---|
| At application | ₹5 crore |
| End of third financial year after authorisation | ₹15 crore |
| Always afterwards | ₹15 crore |
Authorisation steps
- Apply on the PRAVAAH portal in Form A under Regulation 3(2) of the 2008 Regulations; the fee is non-refundable.
- In-principle approval, valid 6 months, extendable once by 6 months.
- Submit a satisfactory System Audit Report from a CERT-In empanelled auditor, with a CA net-worth certificate.
- Certificate of Authorisation after RBI is satisfied; perpetual under the 2021 norms, earlier 5 years under the 2017 directions.
- Start operations within 6 months of the certificate, extendable by 6 months, or it lapses.
Rejected applicants face a 1-year cooling-off period before reapplying.
Escrow rules
- Escrow account with a scheduled commercial bank holds outstanding PPI balances and dues to acquirers.
- No mixing with the company own funds; one extra escrow account is allowed in another scheduled bank.
- Day-end balance must at least equal outstanding balances plus dues; inter-escrow transfers need an auditor certificate.
PPI categories
| Category | Balance cap | Notes |
|---|---|---|
| Small PPI (minimum KYC) | ₹10,000 | Goods and services only; no cash withdrawal, no P2P |
| Full-KYC PPI | ₹2,00,000 | Goods, services, P2P and cash withdrawal as per RBI rules |
| Gift PPI | ₹10,000 | Not bought in cash; non-reloadable |
| Transit PPI | ₹3,000 | No KYC; transport and tolls; perpetual validity |
| Foreign nationals and NRIs | UPI One World framework | Passport and visa verified; person-to-merchant payments |
Background
- PPI: instrument with money loaded in advance, such as wallets, smart cards and gift cards; RBI-regulated.
- PSS Act 2007: lets RBI regulate and authorise all payment systems including UPI, NEFT, RTGS, IMPS, cards and ATMs.
- Closed-system PPIs need no RBI authorisation; the 2026 draft would remove this exemption for marketplaces.
- UPI One World: prepaid UPI instrument for visitors without an Indian bank account; launched by NPCI under RBI supervision.
Exam angle
- Regulator of PPIs: RBI, not SEBI.
- Net worth figures: ₹5 crore and ₹15 crore.
- PPI types: general purpose (small, full-KYC) and special purpose (gift, transit, foreign nationals).