5 smart things to know about semi-closed e-wallets

Semi-closed e-wallets are used to make online payments for goods and services at select merchant locations.
1 Semi-closed e-wallets are online prepaid accounts, which can be used to pay for goods and services at select merchant locations that have tie-ups with the e-wallet issuing company.
2. The owner of the semi-closed e-wallet is not allowed to redeem or withdraw cash from the wallet and is required to use the credit to make online payments.

3. The money is kept in an escrow account with a bank and the customer does not earn any interest on this money.

4 Other than banks and non-banking financial companies, all entities are allowed to issue only closed or semi-closed e-wallets to customers.

5 The customer must fulfil KYC requirements depending on the value of transaction. For payments of Rs 10,000 and above from the e-wallet, a KYC verification process needs to be completed.

Source : ET wealth