Latest news with #PrepaidPaymentInstruments
Business Standard
19-05-2025
- Business
- Business Standard
ZikZuk Receives In-Principle Approval from RBI for Issuance of Prepaid Payment Instruments (PPIs)
VMPL Hyderabad (Telangana) [India], May 19: ZikZuk, a fast-growing fintech startup headquartered in Hyderabad, announces that it has received in-principle authorisation from the Reserve Bank of India (RBI) to issue Prepaid Payment Instruments (PPI). With this strategic approval, ZikZuk is set to enter India's dynamic digital payments space with powerful prepaid wallet and card-based payment offerings. PPIs are instruments that facilitate the purchase of goods and services, conduct financial services, and enable remittance facilities, against the value of money stored within themselves. PPIs are designed to facilitate cashless transactions. Some of the applications of PPI include smart cards for mass transit & travel, digital wallets, or mobile apps that store money for financial transactions. Users can load money and use them for various payments, including online purchases, bill payments & in-store transactions. RBI now allows users of PPIs to conduct UPI payments through third-party UPI apps like Cred, Google Pay, Amazon Pay, etc. With this approval from the Reserve Bank of India (RBI), PPI issuers can issue prepaid wallets and cards and enable UPI payments. ZikZuk is set to operate as a full-fledged domestic player in one of the world's most dynamic FinTech markets. "We're extremely excited to receive this in-principle approval from the RBI," said Rahul Rasa, Co-founder of ZikZuk Technologies. "This is a big step in our journey to build innovative financial products from the ground up, designed specifically for the Indian market. With PPIs, we'll be able to empower users with secure, seamless, and scalable digital payment tools." This approval signals the RBI's growing support for new-age Indian fintech players, enabling them to participate more meaningfully in the country's expanding digital economy. ZikZuk's entry into the PPI space is expected to bring fresh energy and user-first innovations to a sector currently dominated by established names such as PhonePe, Paytm, MobiKwik, Scapia, and Jupiter. With this green light from the RBI, ZikZuk joins a select group of companies poised to shape the future of India's digital payment infrastructure.
India Today
14-05-2025
- Business
- India Today
Explained: Why RBI is reviewing EV wallets after BluSmart collapse
The Reserve Bank of India is closely examining digital wallets used by electric-vehicle platforms, following the abrupt collapse of BluSmart, which left thousands of users unable to access funds stored in its app wallet, reported Bloomberg to people familiar with the matter, the central bank has initiated informal discussions with EV charging point operators and other app-based service providers to assess potential consumer risks tied to such trigger was the financial distress faced by users who had loaded money into BluSmart's so-called closed-loop wallet—a payment mechanism that allows transactions only within the app's own ecosystem. Unlike open-system wallets regulated under RBI's purview, closed-loop wallets currently operate in a grey area, with limited oversight. This lack of direct regulation makes them especially vulnerable when a platform goes BluSmart's case, users were informed last month that it could take up to 90 days to recover their prepaid balances. The delay, coupled with the company's broader financial troubles and alleged fraud, has put a spotlight on the growing but loosely regulated use of such wallets within India's digital services landscape—particularly in the EV told Bloomberg that the RBI is now considering a set of policy options. Among them: mandatory escrow accounts to ringfence consumer funds, and possibly extending elements of the existing Prepaid Payment Instruments (PPI) framework to larger closed-loop wallets. These measures would be similar to those already in place for payment formal stance has been announced yet. However, a move toward tighter rules could reshape how app-based businesses handle customer funds, especially in sectors where prepaid models are central to user Watch
Economic Times
14-05-2025
- Business
- Economic Times
RBI reviews e-wallets of EV players after BluSmart goes bust
The Reserve Bank of India is scrutinizing some digital wallets associated with electric-vehicle players after the sudden collapse of the country's largest all-EV taxi service left users unable to access money tied to their accounts, people familiar with the matter said. The review of payment tools used in India's fledgling EV ecosystem is a result of troubles faced by users of app-based ride-hailing service BluSmart's digital wallet. The events triggered by fraud allegations against the company highlighted the lack of safeguards for users who load money into what's known as closed-loop wallets to transact on apps, including EV-related services like booking rides or using a charging station. The Reserve Bank of India has begun informal consultations with EV charging-point operators and other app-based EV platforms to assess potential consumer risks, said the people, who asked not to be identified as the matter is private. The so-called closed-loop wallets, which are app-based payment systems that can only be used within a single platform, have proliferated in India's fast-growing digital services ecosystem. Unlike open-system wallets regulated by the RBI, these are not directly monitored by the central bank, making them more vulnerable in the event of a platform failure. After thousands of users who had preloaded cash into BluSmart's wallet to book airport and intra-city rides found themselves unable to get a refund or transfer the funds elsewhere, the operator in April told customers that it will take up to 90 days to return the money. The RBI did not immediately respond to an emailed request for comments. The central bank is also said to be mulling a meeting with the parties involved in the coming weeks, people familiar with the plans bank could propose mandating escrow arrangements for consumer balances, similar to those required of payment aggregators, to ensure funds remain protected if a company shuts down. Another idea is to extend some elements of RBI's Prepaid Payment Instruments (PPI) guidelines to large-scale closed wallets, the people regulator has not taken a formal stance yet, but any move to bring app-specific wallets under tighter oversight could have broad implications for India's digital economy, where platforms rely heavily on prepaid balances to build stickiness and drive repeat usage.
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Business Standard
14-05-2025
- Automotive
- Business Standard
RBI reviews e-wallets after sudden collapse of EV taxi service BluSmart
Reserve Bank of India has begun informal consultations with EV charging-point operators and other app-based EV platforms to assess potential consumer risks Bloomberg India's central bank is scrutinizing some digital wallets associated with electric-vehicle players after the sudden collapse of the country's largest all-EV taxi service left users unable to access money tied to their accounts, people familiar with the matter said. The review of payment tools used in India's fledgling EV ecosystem is a result of troubles faced by users of app-based ride-hailing service BluSmart's digital wallet. The events triggered by fraud allegations against the company highlighted the lack of safeguards for users who load money into what's known as closed-loop wallets to transact on apps, including EV-related services like booking rides or using a charging station. The Reserve Bank of India has begun informal consultations with EV charging-point operators and other app-based EV platforms to assess potential consumer risks, said the people, who asked not to be identified as the matter is private. The so-called closed-loop wallets, which are app-based payment systems that can only be used within a single platform, have proliferated in India's fast-growing digital services ecosystem. Unlike open-system wallets regulated by the RBI, these are not directly monitored by the central bank, making them more vulnerable in the event of a platform failure. After thousands of users who had preloaded cash into BluSmart's wallet to book airport and intra-city rides found themselves unable to get a refund or transfer the funds elsewhere, the operator in April told customers that it will take up to 90 days to return the money. The RBI did not immediately respond to an emailed request for comments. The central bank is also said to be mulling a meeting with the parties involved in the coming weeks, people familiar with the plans said. The bank could propose mandating escrow arrangements for consumer balances, similar to those required of payment aggregators, to ensure funds remain protected if a company shuts down. Another idea is to extend some elements of RBI's Prepaid Payment Instruments (PPI) guidelines to large-scale closed wallets, the people said. The regulator has not taken a formal stance yet, but any move to bring app-specific wallets under tighter oversight could have broad implications for India's digital economy, where platforms rely heavily on prepaid balances to build stickiness and drive repeat usage.
Time of India
14-05-2025
- Automotive
- Time of India
RBI reviews e-wallets of EV players after BluSmart goes bust
The Reserve Bank of India is scrutinizing some digital wallets associated with electric-vehicle players after the sudden collapse of the country's largest all-EV taxi service left users unable to access money tied to their accounts, people familiar with the matter said. The review of payment tools used in India's fledgling EV ecosystem is a result of troubles faced by users of app-based ride-hailing service BluSmart's digital wallet. The events triggered by fraud allegations against the company highlighted the lack of safeguards for users who load money into what's known as closed-loop wallets to transact on apps, including EV-related services like booking rides or using a charging station. The Reserve Bank of India has begun informal consultations with EV charging-point operators and other app-based EV platforms to assess potential consumer risks, said the people, who asked not to be identified as the matter is private. The so-called closed-loop wallets, which are app-based payment systems that can only be used within a single platform, have proliferated in India's fast-growing digital services ecosystem. Unlike open-system wallets regulated by the RBI , these are not directly monitored by the central bank, making them more vulnerable in the event of a platform failure. After thousands of users who had preloaded cash into BluSmart's wallet to book airport and intra-city rides found themselves unable to get a refund or transfer the funds elsewhere, the operator in April told customers that it will take up to 90 days to return the money. The RBI did not immediately respond to an emailed request for comments. The central bank is also said to be mulling a meeting with the parties involved in the coming weeks, people familiar with the plans said. The bank could propose mandating escrow arrangements for consumer balances, similar to those required of payment aggregators, to ensure funds remain protected if a company shuts down. Another idea is to extend some elements of RBI's Prepaid Payment Instruments (PPI) guidelines to large-scale closed wallets, the people said. The regulator has not taken a formal stance yet, but any move to bring app-specific wallets under tighter oversight could have broad implications for India's digital economy, where platforms rely heavily on prepaid balances to build stickiness and drive repeat usage.
