Page 33 - Banking Finance October 017

ARTICLE

E-WALLET:

POSSIBILITIES

& FUTURE

A digital wallet refers to an electronic device that submitted their KYC documents. Once these documents, are

allows an individual to make electronic transac-
submitted, the limit would be raised to Rs.1.00 lakh. With
tions. This would include purchasing items on-
the e-Wallet app installed on the mobile, there would be
line from a store using a computer or a smart
phone. An individual's bank account can also be linked to no need to carry cash.
the digital wallet. RBI guidelines on e-wallet (Pre-paid Pay-
ment Instrument)
Mobile Wallets or Digital Wallets or e-Wallet apps allows
one to pay electricity bills, recharge his mobile, book movie Pre-paid payment instruments are payment instruments
tickets and do a lot more right, from his mobile. By linking that facilitate purchase of goods and services, including funds
his Credit, Debit Card or Bank accounts with these e-Wallet transfer, against the value stored on such instruments. The
apps, one can easily make a payment using his mobile value stored on such instruments represents the value paid
phone. for by the holders by cash, by debit to a bank account, or by
credit card. The pre-paid instruments can be issued as smart
One can generally load money into these digital wallets via cards, magnetic stripe cards, internet accounts, internet
Internet banking or via Credit or Debit Card. On most e- wallets, mobile accounts, mobile wallets, paper vouchers
Wallets, there is a limit of Rs.20,000 for users who have not and any such instrument which can be used to access the
pre-paid amount.
About the author
The pre-paid payment instruments that can be issued are
Rajeev Shankar classified under three categories, viz. (i) Closed system pay-
C.M. (Research) ment instruments (ii) Semi-closed system payment instru-
SBIICM ments and (iii) Open system payment instruments.
Hyderabad 1. Closed System Payment Instruments: These are pay-

32 | 2017 | OCTOBER | BANKING FINANCE

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