RBI Probes E-Wallets After BluSmart Collapse Leaves Users Stranded

According to various media reports, India's central bank is investigating some digital wallets linked to electric vehicle companies after the abrupt demise of the nation's biggest all-EV taxi service prevented customers from accessing funds linked to their accounts.

The issues encountered by customers of the digital wallet of the app-based ride-hailing service BluSmart led to a review of the payment methods utilised in India's nascent EV ecosystem.

The incidents brought about by the company's alleged fraud exposed the absence of protections for customers who deposit funds into so-called closed-loop wallets in order to conduct transactions on apps, particularly those that deal with EVs like charging stations or ride-booking.

RBI Putting its Strict Scanner

According to various published reports, the Reserve Bank of India has started informal conversations with operators of EV charging stations and other app-based EV platforms in order to evaluate potential consumer hazards.

 In India's rapidly expanding digital services ecosystem, so-called closed-loop wallets—app-based payment systems that are limited to use on a single platform—have become widely available. Since the central bank does not actively supervise these wallets like it does open-system wallets under its regulation, they are more susceptible to platform failure.

 In April, BluSmart informed customers that it could take up to 90 days to reimburse money after thousands of users who had preloaded money into the wallet to book trips within the city and at the airport were unable to secure a refund or move the money to another location.

Probable Steps RBI Could Take to Enhance E-Wallet Securities

In the upcoming weeks, the central bank is reportedly considering meeting with the parties. To guarantee that money is safeguarded in the event that a business closes, the bank can suggest requiring escrow arrangements for customer balances, much like those that are necessary for payment aggregators.

 According to a media report, another proposal is to apply some aspects of the RBI's Prepaid Payment Instruments (PPI) guidelines to large-scale closed wallets.

Although the regulator has not yet made a formal decision, any action to tighten regulation of app-specific wallets may have far-reaching effects on India's digital economy, as platforms mostly depend on prepaid balances to increase stickiness and encourage recurring use.

Gensol Founders Anmol & Puneet Singh Jaggi Step Down

Almost a month after market regulator SEBI prohibited them from holding important roles within the firm, Gensol Engineering Ltd said on May 12 that Anmol Singh Jaggi, the managing director, and Puneet Singh Jaggi, the full-time director, had resigned.

 In his letter of resignation, Anmol Jaggi stated that he would be leaving his position as Managing Director of Gensol Engineering Limited effective May 12, 2025, at the end of business hours. Additionally, he announced his resignation in response to the directive issued under the SEBI Interim Order on April 15, 2025.

He would want to use this occasion to express his gratitude to the whole Board, the Management Team, and the Company's workers for their cooperation and support throughout his tenure.