E-wallet
Also called: Digital wallet, Mobile wallet · Topic: Payment Systems and Digital Finance · NCERT: Class 12, Ch 3 "Money and Banking"
Meaning
An e-wallet (digital or mobile wallet) is a digital account, usually inside a mobile app. You load money into it in advance and then use it for payments and transfers. In India, RBI regulates e-wallets as prepaid payment instruments (PPIs). Under RBI's PPI Master Direction (2021), full-KYC wallets can hold up to ₹2 lakh. They must also work with UPI and card networks (interoperable). KYC means "know your customer", the identity check a bank or payment firm does. Wallets grew fast after demonetisation in 2016, when cash was scarce. UPI later overtook them.
Example
A student loads ₹1,000 into a mobile wallet from her bank account. She then pays ₹150 for a metro recharge from the wallet balance, without touching her bank account at that moment.
Don't confuse with
- UPI: a wallet needs money loaded in advance. UPI moves money directly from one bank account to another, with no wallet in between.