India’s Central Bank Reviews Digital Wallets Amid EV Sector Concerns

India’s central bank is currently examining digital wallets linked to electric-vehicle (EV) companies. This move comes in the wake of the abrupt collapse of BluSmart, the nation's largest all-EV taxi service, which left many users unable to access funds stored in their accounts.

The scrutiny focuses on payment tools within India's emerging EV ecosystem, prompted by issues faced by BluSmart's digital wallet users. Allegations of fraud against BluSmart have underscored the vulnerabilities in closed-loop wallet systems, where users deposit money for services like ride bookings or charging station use.

Informal Consultations Underway

The Reserve Bank of India (RBI) has initiated informal discussions with EV charging operators and app-based EV platforms to evaluate potential risks to consumers. These steps aim to enhance safeguards for digital wallet users in the EV sector.