Prime Minister’s statement that the “scope of digital wallets is to be expanded” likely refers to broadening the functionality, accessibility, and regulatory support for digital wallet services in the country. Here’s a breakdown of what this expansion might entail:
1. Wider Use Cases
Integration with Government Services: Payments for taxes, tolls, utility bills, and subsidies.
Public Transport: Seamless digital fare payments.
Healthcare & Education: Payments for services, digital health records access, fee payments.
2. Financial Inclusion
Rural Penetration: Targeting unbanked or underbanked populations through mobile-first digital wallets.
Support for Regional Languages: Easier access for non-English speakers.
3. Interoperability Enhancements
UPI and Wallet Interlinking: Seamless transfers between wallets and bank accounts.
QR Code Standardization: Use a single QR code for all payments, regardless of wallet provider.
4. Security and Regulation
Stronger KYC/AML Frameworks: Enhanced safety and fraud prevention.
Consumer Protection Measures: Clear redressal systems and data privacy protocols.
5. International Transactions
Cross-border Payments: Enable remittances and overseas transactions using wallets.
Currency Conversion Integration: Support for forex transactions within wallets.
