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RBI to raise spending limit on e-wallets

Economic Times:  August, 2015

Mumbai: The Reserve Bank will raise the spending limit on e-wallets, which are fast becoming the preferred mode of payment for utility bills and online purchases.

An e-wallet is an electronic card, which works like creditdebit card for making secure online transactions.Many mobile wallet companies have asked the central bank to hike the limit.

"E-wallet is something which is catching on very fast and we are constantly reviewing that and it will get a push once payment banks come, then certainly we will review the process to see how it's going," said RBI deputy governor HR Khan. He said there are already three categories where up to Rs 50,000 can be transacted by giving full 'know-your-customer' (KYC) details.

Under the existing RBI norms, one is required to disclose only mobile number and e-mail ID to hold up Rs 10,000 in a mobile wallet. For an amount more than that, the user has to comply with KYC norms, just like in the case of opening a bank account. Banks have joined mobile wallet companies like Paytm, which has got marquee investors such as Ratan Tata and Alibaba Group. There is no cap, however, on the mobile wallet of banks.