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Important: This policy governs the use of the Closed Wallet System provided by NXT Banking (operated by Laraware Private Limited). By using our wallet services, you agree to the terms outlined in this policy.
1. Introduction
NXT Banking operates a Closed Wallet System as part of its fintech platform. A closed wallet is a digital wallet that can only be used for transactions within our platform and with our authorized service providers.
2. Definition of Closed Wallet
A Closed Wallet (also known as a Semi-Closed Prepaid Payment Instrument) under NXT Banking is:
- A digital wallet maintained within our platform
- Used exclusively for purchasing goods and services from merchants/partners on our platform
- Cannot be used for cash withdrawal except as permitted by RBI guidelines
- Subject to regulatory limits set by the Reserve Bank of India (RBI)
3. Wallet Loading
3.1 Methods of Loading
Users can load funds into their wallet through:
- Bank Transfer (NEFT/RTGS/IMPS)
- UPI Payment
- Debit/Credit Card
- Net Banking
- Cash deposit at authorized points (where applicable)
3.2 Loading Limits
As per RBI guidelines for PPIs:
- Minimum KYC: Maximum wallet balance of ₹10,000
- Full KYC: Maximum wallet balance of ₹2,00,000
- Monthly loading limit: As per your account tier and KYC status
4. Wallet Usage
4.1 Permitted Uses
The closed wallet can be used for:
- Mobile and DTH recharges
- Bill payments (BBPS)
- Money transfer services (DMT)
- AePS transactions
- Payout services
- API service charges
- Commission deductions
- Platform service fees
4.2 Restrictions
The closed wallet cannot be used for:
- Direct cash withdrawal (except as per RBI norms for full KYC users)
- Transfer to other wallets outside our platform
- Purchase of prohibited goods or services
- Transactions that violate applicable laws
5. Wallet Withdrawal/Refund
5.1 Eligible Withdrawals
Wallet balance may be refunded/withdrawn under the following conditions:
- Account Closure: Full balance refund to linked bank account
- Excess Balance: As per RBI guidelines for full KYC users
- Failed Transactions: Automatic reversal to wallet
- Dispute Resolution: As per dispute resolution process
5.2 Processing Time
- Account closure refunds: 7-15 business days
- Transaction refunds: 24-72 hours
- Withdrawal requests: 1-3 business days
6. Security Measures
To protect your wallet:
- All transactions require authentication (PIN/OTP/Password)
- 256-bit SSL encryption for all data transmission
- Multi-factor authentication for sensitive operations
- Real-time fraud monitoring and alerts
- Session timeout for inactive accounts
7. Transaction Limits
Transaction limits vary based on your KYC status and account type:
- Per Transaction Limit: As per service-specific limits
- Daily Transaction Limit: Based on account tier
- Monthly Transaction Limit: As per RBI guidelines
8. Dormant Accounts
A wallet account is considered dormant if:
- No transactions for 12 consecutive months
- Dormant accounts may have restricted functionality
- Reactivation requires identity verification
- Unclaimed balances are handled as per RBI guidelines
9. Closure of Wallet
9.1 Voluntary Closure
Users can request wallet closure by:
- Submitting closure request through the platform
- Providing bank account details for balance refund
- Completing pending transactions
- Verifying identity as required
9.2 Involuntary Closure
NXT Banking may close a wallet for:
- Violation of terms and conditions
- Suspected fraudulent activity
- Regulatory requirements
- Non-compliance with KYC norms
10. Regulatory Compliance
This closed wallet system operates in compliance with:
- RBI Master Direction on Prepaid Payment Instruments (PPIs)
- Payment and Settlement Systems Act, 2007
- Prevention of Money Laundering Act (PMLA)
- Information Technology Act, 2000
- All applicable RBI circulars and guidelines
Disclaimer: The wallet balance does not earn any interest. NXT Banking reserves the right to modify this policy as per regulatory changes. Users will be notified of any significant changes.
11. Grievance Redressal
For any wallet-related complaints:
- Email: nodal@laraware.com
- Response Time: Within 24-48 hours
12. Contact Information
For queries regarding this policy:
- Company: Laraware Private Limited
- Email: legal@nxtbanking.com
- Website: www.nxtbanking.ai
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