After PayU India, Mumbai-based BookMyShow has decided to discontinue its wallet service, MyWallet, by the end of February. The development comes just a few days after it was reported that the online ticketing platform was in final talks with private equity firm TPG Growth to raise $50 Mn–$60 Mn (INR 320 Cr–INR 380 Cr).
As per a report by VCCircle, the company has sent out an email to subscribers, asking them to transfer their existing wallet money to their individual bank accounts by February 28.
BookMyShow’s decision to shut down its wallet is likely triggered by the RBI’s recent introduction of stricter guidelines on the issuance and operation of Prepaid Payment Instruments (PPIs), including mobile wallets.
As part of the new norms released last October, the RBI has mandated full KYC for users of all digital wallets operating in the country. Furthermore, the central bank has stated that minimum KYC wallets cannot have a balance of more than $153 (INR 10K) and this can be allowed only for the purchase of goods and services and not for remittances to other wallets or bank accounts.
Meanwhile, full KYC wallets have a limit of $1,531(INR 1 Lakh) and all facilities for fund transfer are allowed. Also, reportedly, PPIs cannot be loaded with more than $765 (INR 50K) per month. As per sources, the revised rules were instituted to detect fraud detection and prevent fake wallet transactions.
A Bit About BookMyShow: From 1999 To Present
BookMyShow was founded in Mumbai in 1999 and officially launched in 2007. It is currently present in over 650 towns and cities across India. In 2012, Accel Partners invested $18 Mn in the company. BookMyShow later raised $25 Mn in 2014 in a round led by SAIF Partners that also saw participation from existing investors Accel and Network 18.