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Important: This policy governs the Closed User Group (CUG) internal ledger facility provided by NXT Banking (operated by NxtBanking). By using the platform, you agree to the terms outlined in this policy.
1. Nature of Wallet
The wallet available on nxtbanking.ai is a Closed User Group (CUG) internal ledger facility provided exclusively to verified business partners for the limited purpose of consuming platform-enabled services.
This wallet:
- Is NOT a Prepaid Payment Instrument (PPI) under RBI Master Directions on PPIs
- Is NOT a semi-closed wallet
- Is NOT issued under RBI authorization as a payment instrument
- Is NOT a consumer wallet
- Is NOT usable outside the nxtbanking.ai platform
NxtBanking does not issue, operate, or manage any RBI-regulated prepaid payment instrument.
2. Purpose of Wallet
The wallet functions as:
- A prepaid internal service balance
- A settlement ledger for partner service usage
- A technical mechanism to enable transaction routing through regulated banking partners
Permitted Uses
It may only be used for:
- AEPS
- BBPS
- DMT
- Recharge & Utility Services
- Payout Services
- Other services explicitly enabled inside the platform
Prohibited Uses
The wallet cannot be used for:
- Public fund collection
- Merchant QR acceptance
- Peer-to-peer transfers
- Investment or savings
- Third-party payments
- Any off-platform transaction
3. Funding Rules
Wallet funding is permitted only through:
- The partner's own mapped bank account
- The partner's own UPI ID registered during onboarding
The following are strictly prohibited:
- Third-party deposits
- Customer fund routing
- Forwarding UPI QR to public
- Acting as payment collection agent
- Any misuse violating RBI/NPCI norms
Violation may result in:
- Immediate wallet freeze
- Transaction suspension
- Reporting to authorities
- Permanent termination
4. No Regulatory Status as Wallet Issuer
NxtBanking:
- Does not hold customer deposits
- Does not act as a payment aggregator
- Does not act as a payment gateway
- Does not operate escrow or nodal account as a payment institution
- Does not provide public wallet services
All financial transactions are executed via authorized banking institutions and regulated financial partners.
5. Transaction Execution Clarification
NxtBanking only provides:
- Technology interface
- API orchestration
- Dashboard management
- Compliance tooling
Actual fund movement, settlement, and authorization are handled by regulated entities.
6. Compliance & Monitoring
The platform maintains:
- KYC verification controls
- Transaction monitoring systems
- Suspicious activity detection
- Audit logs
- Law enforcement cooperation protocols
7. Regulatory Position Statement
This wallet is a restricted internal service balance mechanism and does not fall under the RBI PPI framework as it is:
- Not transferable
- Not usable at merchants
- Not interoperable
- Not consumer-facing
- Not publicly accessible
It exists solely for controlled partner service consumption.
Disclaimer: The wallet balance does not earn any interest. NXT Banking reserves the right to modify this policy as per business or regulatory changes. Partners will be notified of any significant changes.
8. Grievance Redressal
For any wallet-related complaints:
- Email: no-reply@laraware.org
- Response Time: Within 24-48 hours
9. Contact Information
For queries regarding this policy:
- Company: NxtBanking
- Email: no-reply@laraware.org
- Website: nxtbanking.ai
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