A couple of years ago the RBI put a stop to Wallet365, an internet wallet service that had been offered by The Times of India Group. The RBI was concerned that the system was unregulated.
According to a report on
MediaNama, the RBI is now revisiting the subject of ewallets and other prepaid instruments. The RBI is inviting comments via their "Approach Paper."
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We went through the Approach Paper, and noticed some issues:
– Not keen on Internet Banking? The RBI don’t appear to be very keen on Internet Wallets, though - to begin with, only banks will be permitted to transfer funds online or using mobile phone networks.
– Limiting Use Of Cash Cards: Semi-Closed System Payment Instruments (Cash Cards) up to Rs 500 may be to be issued without any KYC subject to reporting of annual/suspicious transactions. Which means cash cards above Rs. 500 will require KYC verification. Remember that the average transaction amount for railway tickets using cash cards in August was Rs. 889.96, and a large number of users who don’t have bank accounts will be affected.
– Limiting Reloading Of Cash Cards: Semi-Closed System Payment Instruments (Cash Cards) may only be reloaded by debit to a bank account or using credit cards. What works for Cash Cards is that people can buy them from vendors or reload them by paying cash.
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You can access the Approach Paper at:
RBI Guidelines - Prepaid Payments - MediaNama.com