Explained: Why mobile wallets may become more popular than bank accounts

The RBI has recently announced several measures to enhance the functionality of mobile wallets. With the addition of the features, mobile wallets will function exactly like banks. Here is all you need to know:

Recent announcements made by the Reserve Bank of India (RBI) indicate that it wants to boost digital payment infrastructure in the country and encourage more people to use prepaid payment instruments (PPIs) like mobile wallets. But why is the central bank focusing on encouraging usage of e-wallets or mobile wallets? For starters, mobile or e-wallets are easy to operate and the enrolling process is easier than opening a bank account. Unlike banks, there is no requirement for a minimum balance as well. At the moment, banks offer some key functionalities that are not available to users of mobile wallets. However, the RBI has proposed some features that could make mobile wallets function exactly like banks.