E-wallet is an online prepaid account where one can keep money, to be used when required. There are three kinds of e-wallets— closed, semiclosed and open.
Open e-wallets can be issued by banks only and can be used for purchase of goods and services, just like a credit card, up to the pre-funded amount.
Open e-wallets can also be used for cash withdrawals at automated teller machines or business correspondents.
E-wallets can be restocked remotely to enable the holder to utilise cash as needed. This is easier and efficient when compared to a fund transfer across locations.
E-wallet facility is very useful for those who don’t use Net banking, don’t possess a credit card or don’t prefer making online card payments.