A prepaid wallet license has started to gain the attention of entrepreneurs who want to join India’s digital economy. However, they can only do so if they meet the eligibility criteria. This article discusses the qualities an entrepreneur must have to start a payment wallet in India.
India’s digital economy is currently on a rising trajectory. Aiding in this accelerated development are the new-age entrepreneurs. They understand the need of a digital economy in the current scenario and therefore, are putting forth their efforts to start their own prepaid payment wallets.
However, to obtain the Prepaid wallet license, their enthusiasm should match their talent. Reserve bank of India has set forth specific eligibility criteria that one must meet before applying for the license.
Let’s discuss.
Money Wallet License Eligibility
When it comes to Money Wallet License, the Eligibility criteria entails points that are more in line with the infrastructural aspects of the applicant:
Prior Approval for Banks or NBFCs
The entrepreneurs aspiring to start payment wallets must first obtain approval from Reserve Bank of India. It’s specifically for applicants that are either scheduled banks of Non-Banking Financial Institutions.
Criteria for a new company
Startup entrepreneurs with no access to audited financial statements must obtain a certificate from a practicing Chartered Accountant. Doing so they will declare their current worth that gives RBI the right idea of the entrepreneurs financial status. Read More: Trademark Investigation
Eligibility Criteria related to Foreign Direct Investment
In case the entrepreneur has acquired foreign direct investment in the company, it must be as per the FDI norms of India.
Net worth requirement
The applicant for the Prepaid wallet license should have the net worth of at least INR 25 Crore. He has to prove that net-worth by providing a balance sheet to the Reserve bank of India.
Business entity
The applicant must first register their business as a private limited company incorporated as per the norms of Companies Act before applying for the prepaid wallet license. Related Content: Temporary Uplink Benefits
Prepaid wallet License fees requirement
Reserve Bank of India has set forth two categories for prepaid wallet license fees:
- Application processing fees, and
- The entry fees
You can consider your net worth requirement that you must fulfil as your entry fee. If you’re not able to show that you’re financially cable to handle money wallet business, RBI won’t consider you eligible for the license. As for the application processing fee, you can find out about via the aid of RBI business consultants.
Procedure to obtain the prepaid wallet license
The procedure of obtaining the license entails measures to prove your worth to the Reserve Bank of India. Thus, the steps to obtain the prepaid wallet license are as follows:
- Furnish the requisite documents required for the wallet license.
- Submit the application form.
- Let the RBI assess the application form and the documents.
- Get the Prepaid wallet license once the application’s processing is complete.
Conclusion
Prepaid wallet license stands at the fore front of India’s digitization desires. Therefore, the entrepreneurs are moving towards compliance offices to obtain their business registrations. Read More: Trademark Assignment
However, care must be taken about the eligibility criteria. Reserve Bank of India is strict about who to issue the license to. Thus, you should only step towards payment wallet business if you’re financially, legally and technically capable of providing the services.
Do you have to what it takes to start a payment wallet in India? Read this blog to learn about the eligibility criteria to obtain the payment wallet license.
