RBI Launches Investigation into EV Digital Wallets Following BluSmart Collapse: Report

The Reserve Bank of India (RBI) has begun an examination of digital wallets linked to electric vehicle (EV) services after the unexpected shutdown of the premier all-electric taxi platform left customers unable to retrieve their wallet balances, according to sources with knowledge of the situation, says a report by Times of India.

EV Industry Faces Regulatory Scrutiny

The apex bank's review of payment systems within India's emerging electric vehicle sector comes in the wake of difficulties experienced by users of the BluSmart ride-hailing app's digital wallet. 

The controversy, sparked by allegations of fraudulent practices against the company, has exposed the vulnerability of consumers who deposit funds into "closed-loop wallets" for various transactions, including booking EV rides and accessing charging facilities.

RBI Begins Stakeholder Consultations

Sources requesting anonymity were quoted as saying by the report that the RBI has commenced informal discussions with EV charging infrastructure providers and other electric vehicle platform operators to evaluate potential risks to consumers. 

These preliminary consultations signal growing regulatory attention to consumer protection in specialised digital payment systems as India's sustainable transportation sector continues to expand.