Revolut India to Expand Its Offerings with a New License from the RBI

Tiger Global and Revolut India have secured an in-principle approval from the Reserve Bank of India for Prepaid Payment Instruments (PPI).

The financial instruments offered as part of the deal include prepaid cards and wallets, which will see the neobank expand its reach across the Indian market.

Revolut India to Expand Offerings in India with RBI License

The license given to Revolut India leverages the existing licenses granted to the company by the RBI. This license will ensure that the company can continue operating like a Category-II Authorized Money Exchange Dealer (AD II).

As an AD II dealer, Revolut India will issue forex cards in multiple currencies. It will also provide access to cross-border remittances. With this offering, the neobank will expand its offerings in the neobanking industry and give customers more access to financial products.

While commenting on the development, the CEO of Revolut India, Paroma Chatterjee, opined that this license was a major milestone for the company. The executive opined that Revolut India would give customers in India a chance to access all services under a single platform.

“It is a major milestone for us, as it lends us the unique opportunity to offer Indian consumers both international and domestic payment solutions on a single platform,” Chatterjee said.

Revolut Transforming Banking in India

Revolut is the largest neobank in Europe, and it entered the Indian market in 2021. At the time, the neobank said it would challenge the existing players within the domestic payments industry. The approval by the RBI seeks to strengthen the position that Revolut has in the industry.

The PPIs are the financial instruments and the payment tools that use stored monetary value including digital wallets, smart cards and vouchers to conduct financial transactions.

The governor of the RBI, Shaktikanta Das, noted that allowing PPIs to link using third-party UPI applications was necessary. Moreover, PPI holders will also be allowed to conduct UPI payments in the same way as those holding bank accounts.

“Being fully compliant with all regulatory requirements is our top priority. India is the only market where Revolut has therefore undertaken the massive task of localising the global tech-stack, in order to comply with local regulations,” Das said.

Chatterjee also said that Revolut planned to launch an entire suite of money management services that focused on the digital aspect. These services will target Indian customers and allow them to manage finances such as payments and remittances.

This app is currently being used by employees, and it will go live after the internal testing finalizes. Chatterjee noted there were more than 175,000 prospective clients on the waitlist for Revolut India.