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 credit and debit card for making secure online transactions.Many mobile wallet companies have asked the central bank to hike the limit.
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. There is no cap, however, on the mobile wallet of banks.