November 10, 2025 – The Reserve Bank of India (RBI) has given in-principle approval to Junio Payments Pvt Ltd to issue Prepaid Payment Instruments (PPIs) — marking the start of a new category of UPI-linked wallets for children.
For the first time, minors can make UPI payments — scan a QR, send money, or shop online — without having a bank account of their own.
But how exactly does that work? Let’s break it down.
What Exactly Is a PPI Wallet?
A Prepaid Payment Instrument (PPI) is simply a digital wallet where you add money first and spend later. It’s regulated by the Reserve Bank of India (RBI) to make digital payments safe and traceable.
| Type of PPI | Where You Can Use It | Example | Cash Withdrawal |
|---|---|---|---|
| Closed | Only with the same brand | Amazon Pay balance | No |
| Semi-Closed | At multiple merchants | Paytm, PhonePe, Junio | No |
| Open | Anywhere, including ATMs | HDFC Forex Card | Yes |
For kids’ UPI wallets, RBI has approved the semi-closed type — meaning:
- Parents load money (say ₹500).
- Kids spend via UPI at stores or online.
- Parents monitor and control usage.
How does it work?
- Wallet, not a bank account
- The child won’t have a bank account. Instead, they’ll use a PPI wallet (like a prepaid card) issued under RBI norms.
- Junio’s wallet links this PPI with UPI, so kids can pay using UPI QR codes.
- The parent acts as the main account holder
- A parent or guardian loads money into the child’s wallet using their own bank account.
- Parents can set limits, monitor spending, and control top-ups.
- UPI Circle structure
- This uses the NPCI’s concept of a “UPI Circle” — where a primary user (parent) authorises a secondary user (child) to use UPI access within set limits.
- It’s like giving controlled access, without granting a full bank account.
- Regulated prepaid model
- RBI already allows small-value PPIs (up to ₹10,000–₹20,000) with simplified KYC.
- Junio’s approval lets it issue such PPIs that can connect with UPI — making it safe, compliant, and fully traceable.
- No credit, only spending
- Kids can only spend the loaded balance.
- There’s no loan, overdraft, or EMI — purely a debit-style prepaid use case.
Why it matters
| Feature | Standard UPI (for everyone with an account) | New UPI Wallet (Kids) |
|---|---|---|
| Bank Account Needed | Yes | No |
| Controlled by | User | Parent/Guardian |
| Regulatory Type | Bank/NPCI | RBI PPI + UPI Integration |
| Typical Limit | No fixed cap | ₹5,000 per txn (expected) |
| Risk Level | User managed | Parental oversight |
What’s next
- The RBI approval is in principle, meaning Junio must still meet final compliance checks before public rollout.
- Once active, it could set a precedent for other fintechs to launch teen-focused UPI wallets, backed by full regulatory clearance.
Easemoney insight
Unlike typical fintech features that target adults, this initiative opens UPI access to a younger demographic — safely and legally.
It turns digital payments into a learning tool for minors, helping them understand money, limits, and digital behaviour early on — under parental supervision.
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