BluSmart has extended the timeline for refunding wallet balances to 90 days.

This is an increase from the six days announced earlier this week.

This change comes as ride bookings remain suspended in cities where the company operates, including Delhi-NCR.

Customers have expressed concerns on social media over the delay and ambiguity regarding their refunds.

The Securities and Exchange Board of India has accused promoters Anmol Singh Jaggi and Puneet Singh Jaggi of misusing funds and barred them from board positions and the securities market.

According to SEBI, loans intended for vehicle financing were diverted to unrelated real‑estate transactions.

🔗 Source: The Times of India

🧠 Food for thought

1️⃣ Regulatory blind spots in closed-loop wallets leave consumers vulnerable

BluSmart’s situation highlights a significant regulatory gap in India’s digital payment ecosystem that directly impacts consumer protection.

Closed-loop wallets like BluSmart’s are specifically exempt from RBI’s Master Directions on Prepaid Payment Instruments, meaning they operate without the central bank’s licensing or supervision 1.

This regulatory gap creates a precarious situation for consumers, as there are no statutory mandates governing fund segregation, refund timelines, or dispute resolution mechanisms for these instruments 2.

In contrast, semi-closed wallets issued by both banking and non-banking entities require RBI approval and must maintain strict customer grievance redressal mechanisms 3.

The absence of clear regulations allows BluSmart to extend refund timelines from 6 days to 90 days without facing regulatory consequences, demonstrating how easily consumer funds can be held when regulatory frameworks are incomplete.

This case shows how the rapid evolution of digital payment systems has outpaced regulatory frameworks, leaving consumers with limited recourse when companies face financial distress.

2️⃣ Complex money trails and the challenge of fund oversight in green initiatives

Recent BluSmart developments