RBI reviews e-wallets after BluSmart case

India’s central bank is scrutinising 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.

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