What Is E Wallet and Its !!!

What is E-wallet ?
Digital wallet or electronic (E-wallet is an online prepaid account where one

can stock money, to be used when required. As it is a pre-loaded facility,
consumers can buy a range of products from airline tickets to grocery
without
swiping
a
debit
or
credit
card.
How
do
you
get
one?
You can log on to sites ranging from telecom services, online grocery stores,
recharge portals to even sites selling furniture that use e-wallet as an
alternative
payment
option
and
get
started
on
saving.
How
to
use
an
e-wallet
The sites where e-wallet services are available generally have the following
few
easy
steps
to
get
started.
As per the Reserve Bank of India, there are three kinds of e-wallets in
India: closed, semi-closed and open.
Closed e-wallets: These are wallets issued by an entity for facilitating

the purchase of goods and services from it. These instruments do not permit
cash withdrawal or redemption. Hence, RBI approval is not required for

issuing
them.
E.g. Cab services, e-commerce and mobile companies create e-wallets for
making payments towards purchase of products from them /for usage of
their services. They provide cash backs for payments made through this
channel. This is one way of ensuring loyalty of their customers.
Semi-Closed e-wallets: These are wallets which can be used for

purchase of goods and services, including financial services at merchant
locations/ establishments which have a specific contract with the issuer to
accept them. These wallets do not permit cash withdrawal or redemption by
the
holder.
Wallets for amounts upto Rs.10,000/- can be created under this category by
accepting minimum details of the customer and the total value of reloads
during any given month also does not exceed Rs. 10,000/-.
Amount upto Rs.50,000/- can be created in wallets by accepting any
officially valid document which is compliant with anti-money laundering
rules. Such wallets are non-reloadable in nature i.e. Money cannot be put in
these wallets beyond 10000Rs. Under a normal circumstance.
Amount upto Rs.1,00,000/- can be created by with full KYC and can be
reloaded.
E.g. AirTel Money, which is used for making payments for a range of services
like money transfer from Airtel Money to another bank account or any other
Airtel Money Wallet or paying select utility bills.
Open e-wallets: These are wallets which can be used for purchase of
goods and services, including financial services like funds transfer at any
card accepting merchant locations [point of sale (POS) terminals] and also
permit cash withdrawal at ATMs / Banking Correspondents (BCs). However,
cash withdrawal at POS is permitted only upto a limit of Rs.1000/- per day
subject to the same conditions as applicable to debit_cards (for cash
withdrawal
at
POS).
E.g. M-Pesa is an open wallet run by Vodafone in partnership with ICICI
Bank. Axis Banks e-Wallet Card, can used for making payments on sites
that accept Visa cards, with a minimum limit of Rs 10, and a maximum
limit of Rs 50,000, and a validity of 48 hours.
What are the benefits?

The sites where e-wallet services are available generally have the
following
few
easy
steps
to
get
started.
Ease of use without having to enter your debit/credit card details for
every
online
transaction.
For some sites there is no minimum amount and you can deposit an
amount
as
low
as
Rs
10.
You can pass on the benefits of your e-wallet to your friends and
family as well , There is no chance of a decline of payment since ewallet
is
a
prepaid
account.
What
Revealed
are
passwords
the
can
lead
risks?
to
theft.
There is no facility of refund; the amount is only redeemable against a

purchase.
Where
can
you
use
E-Wallets?
In grocery shops
Online retailing shops
Banks
E-commerce sites
Paying prepaid / postpaid DTH / mobile bills ,
Electricity bills
Booking tickets
Utility payments
Sending money to any accounts using bank account no. or mobile
no
Some popular ewallets today are Paypal , Paytm , Airtel money , Apple pay
Some Suggestions
Here are few tips that will help you make the most of using these mobile
wallets:
1. Complete your KYC for enabling high value transactions
The banking regulator Reserve Bank of India limits funds transfers to

wallets to Rs 10,000 for customers who are not KYC verified. Verified
customers can transact up to Rs 1 lakh using mobile wallets. So it makes
sense to complete the KYC norms and get a verified account.
2. Look out for the discounts and cashbacks

Currently due to the presence of multiple companies in the mobile wallet
industry, many of them offer deep discounts and cashback offers when you
make payments, especially in volume-driven transactions like booking movie
tickets or recharging prepaid devices.
3. Secure your phone for your wallet security

Digital wallets have minimized the risk of losing physical wallets and cards.
But the bigger risk now is loss of the smartphone and with it the mobile
wallet. If you have a digital wallet service, then lock your phone screen with
a good password. Use different passwords for multiple digital wallets.
Download a good mobile security app to ensure your digital wallets are not
compromised.
4. Keep a good mix of various mobile wallets

Since the industry is currently in its growing years, all players are looking to
tie up with as many merchants as possible to increase the usage of mobile
wallets. They are also offering great discounts and cashbacks. So keep a
good mix of some of the best and the most widely used open, closed and
semi closed digital wallets on your smartphone. Enjoy the discounts and
cashback offers from multiple service providers; sometimes you may end up
with better off using a mobile wallet than paying with your credit or debit
cards.
Improvements feedback for ewallet
RSA encrypted algorithm should be ensured at higher level

Some of the digital wallets doesnt needs smartphones at all , what it
needs is plastic card that enables transactions , which has to be
enabled with finger print sensors
When using ewallets , auto verification has to be done before
processing and also to avoid payment tampering
..
Ewallets are online / ecommerce based , it should be applicable to

transfer to any like PV FACITLITY
Bitcoin , Apple pay are getting popular these days . it should be
interlinked to these facility to use anywhere in the exchange of
currencies
It should be used very easily by any users who has the amount or
points equivalent to it..
Should be applicable to various mainstreams in coming future

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What is E-wallet ?

Digital wallet or electronic (E-wallet is an online prepaid account where one

Closed e-wallets: These are wallets issued by an entity for facilitating

cash withdrawal or redemption. Hence, RBI approval is not required for

Semi-Closed e-wallets: These are wallets which can be used for

What are the benefits?

There is no facility of refund; the amount is only redeemable against a

1. Complete your KYC for enabling high value transactions

The banking regulator Reserve Bank of India limits funds transfers to

2. Look out for the discounts and cashbacks

3. Secure your phone for your wallet security

4. Keep a good mix of various mobile wallets

Improvements feedback for ewallet

RSA encrypted algorithm should be ensured at higher level

Ewallets are online / ecommerce based , it should be applicable to

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