The Reserve Bank of India (RBI) has readied an approach paper to address the issue of the currently unregulated cash cards and Internet Wallet services in India.

The approach paper has proposed some ideas and has also invited comments. After the comments are submitted, a fresh draft will be prepared and opened up for further comments. This will ensure that all legal and relevant points will be taken into consideration before actually coming up with a legislation that will govern services like this.

While cash card services like ITZ Cash and Done Card have been pretty popular in the country, with ITZ Cash accounting for around Rs. 44 crore transactions in July and Rs. 41.6 crore in August, there still is no legislation in sight for transactions like these.

This is because of Know Your Customer (KYC) norms issues that are still under discussion. The RBI had earlier put into cold storage a service called Wallet 365 from the Times of India Group owing to similar concerns. The new legislation, which is still being drafted, will take a lot of revisions before an acceptable final draft can be agreed upon.

Via: Medianama