Digital Wallet: Here’s What to Do When Faced With Regulatory Changes

In the aftermath of the recent issue involving the Reserve Bank of India (RBI) and a prominent digital wallet service provider, it is essential for consumers to understand what to do and how to process the information disseminated from various social media platforms. 

Verify Merchant Reliability

With a focus purely on convenience at the time of initiating online transactions, customers often overlook due diligence on the merchant’s legitimacy. This could pose a risk wherein merchants with fraudulent intent could exploit the platform to deceive users. 

It is crucial to always research the merchant before making a purchase. Check reviews, ensure the website is authentic, and have a social media presence. Stay away from deals that seem too good to be true.

Remain Wary of Fraudulent Investment Schemes

Though there are a few platforms that offer legitimate investment options, there may be others that could breach the trust related to digital wallets to lure users into fraudulent schemes. Be wary about investing based purely on promotions within a digital wallet. Ensure due diligence when it comes to research, be aware of the associated risks, and only invest through licensed and regulated channels.

Be Aware of Data Privacy

It’s crucial to remain watchful of the data one shares with digital wallets. Ensure that you read the privacy policies carefully, understand how the data is used and shared, and only grant access to information that is essentially necessary for transactions.

Enable Multi-Factor Authentication

Through this, a user can add an extra layer of security to a digital wallet account. It requires additional verification beyond just a password. For a fraudster to gain access won’t be that easy this way. Ensure that MFA is enabled on a digital wallet. Also, use strong, unique passwords to ensure added protection.

Update the App Regularly

There is a possibility that outdated apps may fail to initiate some crucial security updates and notifications. For this reason, keep the digital wallet app updated with the latest version to ensure one has the latest security patches and features.

Promptly Report Any Unauthorised Activity

Remain proactive in monitoring digital wallet transactions. Regularly check the statements for unauthorised activity. Also, promptly report any suspicious transactions or behaviour to the platform’s customer care or relevant regulatory authorities.

Ensure Diversification of Digital Wallets

Although it is convenient, relying purely on a single digital wallet can concentrate risk. It is important to consider using a combination of wallets from reputable providers with different security features and offerings. This approach distributes financial exposure and offers options in case a particular platform faces issues.

Remain Abreast With New Regulations 

The digital wallet landscape in India is yet at a nascent stage, and regulations are constantly being updated. Remain up-to-date with regulation changes and how they are likely to impact chosen platforms. This will aid one in making informed decisions and choosing wallets that address the latest security and compliance standards.

Beware of Rumour-Mongering

As regulatory changes are introduced, it’s important to stay informed and carefully review the documents without giving in to stress. In addition, reach out to the platform’s customer care helpline to comprehend the implications that one may face as a consumer. This proactive approach would help in staying well-informed. Also, it would help in not relying on misinformation or rumours.

It is important to understand that the RBI ensures the safety of a depositor’s funds, offering reassurance. However, it’s crucial to stay informed by remaining updated with the latest information and notifications from the central bank. 

Be aware of announcements and communications, and regularly check the account status to understand any changes. In case one has any doubts or concerns related to any services, it is important to reach out to the customer care of the platform. 

Notably, even key players in the fintech industry are not immune to challenges. With an understanding of the potential risks and adopting safe practices, consumers can make informed choices while protecting themselves against fraudulent dealings related to digital wallets.