Digital Wallets: All You Need To Know


Digital Wallets Paytm freecharge mobikwik e-wallets

Demonitisation has hit us all hard. From the long queues outside Banks and ATMs, to the government’s constant flip-flops on withdrawal limits, people are left confused and cashless (literally). Digital wallets to the rescue! Everyone from rickshaw pullers to students and working professionals are replacing their leather wallets with the smartphone.

But are e-wallets safe? Any hidden charges? Do they also allow loose change? We reviewed the most popular apps like Paytm, Freecharge and Mobikwik to get to the bottom of these doubts ourselves.

Note: These apps regularly undergo updations and tweaks in features. So, a lot will change as time passes. This article hopes to answer most questions that we had in mind. In case we missed out on anything, do chime in on the comment section below to help others out!

How safe is my money in Digital Wallets?

A few clicks is all it takes to pay from Paytm, Freecharge and Mobikwik, no questions asked. Requests for PIN and/or OTPs don’t exist while completing online transactions. Basic password protection and one step login verification for every use would help. Shouldn’t be that difficult for tech companies huh? 

You can however be smart about paying it forward with digital wallets. Keep your phone password-protected, secure the apps with an app-lock and try to limit the amount of money transferred to the wallet from your bank account.

What are the transaction and withdrawal limits?

As per RBI guidelines*, you can add up to Rs. 20,000 in your digital wallet account (for Non-KYC customers) and Rs.1,00,000 (for KYC customers).

Non-KYC customers who are Shopkeepers and Merchants cans tore upto Rs.50,000 in their accounts. 

The ‘e-wallet to bank’ transfer limit is Rs. 25,000 per month.

*Terms and conditions for other nature of transfers vary from company to company.

How much do I have to pay to use Digital Wallets?

Currently, all e-wallet services have a 0% fee on transfers to bank accounts (woohoo!), but it is only valid until the end of 2016. (Oh no!).

Guess we’ll have to wait and watch…

Do they work offline?

Yes of course. In case your internet data on the phone doesn’t work, you can still exchange money by scanning QR-Codes(PayTM), SMS (PayTM) or by using the 4 digit #OnTheGo PIN (Freecharge).

What if I want to close my e-wallet account?

Yes, you can close your e-wallet accounts by calling/e-mailing the customer care of your respective e-wallet service.

So which e-wallet service should I choose?

It makes sense to use the e-wallet service that is the most popular among your friends, family, home delivery boys and local kirana store vendors. Because the catch in using e-wallets is that both parties need to have the same app/service installed. You cannot transfer money from a PayTM wallet to a Freecharge wallet.

Since PayTM is the largest e-wallet service in India in terms of user base, you could go give them a shot. They were the first guys to reach out to the rickshaw walas, vegetable vendors and local stores.


Paytm, Freecharge, Mobikwik and others offer exciting cash backs, convenient discounts and strategic tie-ups galore. Why you would trade this experience for scampering for torn notes and coins in your jean pockets is beyond us. Digital is the way of the future. Demonetisation or not! 


  1. I never thought I’d go digital and leave my old school vibe behind. Demonetisation totally cramps my style but what to do. Paytm it is!