Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
The demand for a semi-closed wallet license has been increased, and, in India, the Semi-closed wallet license is well regulated by RBI. In this article we shall have a deep understanding of a semi closed wallet.
The e-wallet, Payment Wallet or Semi-Closed Wallet segment has appeared as a rising star in the area of non-cash transactions in India. Moving towards a cashless economy is the concern of all policymakers, academicians, and commercial enterprises.
The demonetization drive of Prime Minister Narendra Modi has increased the online transaction rate at a rapid speed, contributing to over 65% of the overall business, which earlier was subjected to just 15 %.
The use of e-wallets along with other instruments, such as debit and credit cards, will not only help to curb the corruption rate in the country but will also lead to lower interest rates and increase the supply of money in the economy.
E-wallets are primarily categorized into three types- closed wallets, semi-closed wallets, and open wallets.
We are going to discuss the procedure to obtain a license for operating a semi-closed wallet. The Reserve Bank of India issues licenses for the operation of semi-closed wallets in India under the Payment and Settlement Systems Act, 2007. All the existing entities issuing semi-closed wallets shall apply within three months from the date of their coming under the purview of the Act.
RBI provides guidelines regarding eligibility criteria and conditions for the operation of various e-wallets systems in the country. After the advent of the aforementioned act in 2007, various banking and nonbanking entities as specified by RBI are engaged in the issuance of prepaid payment instruments after obtaining necessary license or approval, and complying with the guidelines issued by RBI in this regard.
The following categories of semi-closed wallets shall be issued after conducting proper customer due diligence:
All semi-closed wallets should have a validity of six months from the date of its issuance. All transactions covered by the wallet should be duly honored by the entity issuing it before the expiry of the wallet provided sufficient balance is outstanding on the wallet. A well-defined and working mechanism for customer protection shall be established by every entity issuing such wallets.
After the demonetization move, RBI relaxed the limits of Mobile Wallets[1] from INR 10,000 to INR 20,000 temporarily, and merchants are allowed to transfer INR 50,000 per month from wallets to their banks. This has been done to encourage the use of mobile wallets.
The Indian e-wallet market is expected to grow at a CAGR of 196% during FY 2017 to FY 2022 and reach INR 1512 Billion by the end of FY 2022 as compared to INR 1.54 Billion during the FY 2016. We may see increased use of e-wallet transactions all around the world in the coming years.
Read our article:All You Must Know About Semi Closed Wallet
An Automotive Dealerships Audit Checklist helps in an examination and review of aspects related...
The Companies Commission of Malaysia sets mandatory guidelines for maintaining the annual compl...
An industry audit is an important aspect of the oil and gas industry, it serves as a tool for e...
With the ever-increasing complexity of operations and potential risks involved with the chemica...
A joint venture is a strategic business arrangement in which two or more companies collaborate...
Are you human?: 8 + 2 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Foreign Direct Investment Norm (FDI) Foreign Direct Investment norm is an investment made by the person resident ou...
13 Jul, 2020
Background: Section 129 of Companies Act, 2013 read with corresponding rules states to submission of financial stat...
28 May, 2019