The State Bank of India (SBI) has blocked its customers from transferring cash into e-wallets through netbanking. However, customers can top-up up the e-wallets via debit and credit cards.
The Reserve Bank of India has asked clarification from the bank on this.
Clarifying the issue, SBI chairman Arundhati Bhattacharya said that the service has been blocked because of recent breaches and security reasons. The bank has a committee that is looking into high risk and security breaches.
She emphasized that the situation is temporary and will be reversed soon.
However, sources from the e-wallets industry said that this could be a move by the bank to get onboard more customers for its SBIbuddy app, which currently has around 8 million users.
Bipin Preet Singh, Founder & CEO of Mobikwik told CNBC-TV18 that SBI stopped the service almost 3-4 months back citing security breaches. Mobikwik’s business since then has been impacted by nearly 5-7 percent.
Singh further said that other banks allow transfer of money into e-wallets via netbanking and hopefully, SBI too will re-start it.
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