Indian movie ticketing firm BookMyShow.com is reportedly discontinuing its MyWallet service at the end of next month.
The firm has reportedly emailed its subscribers asking them to transfer their existing wallet money into their bank accounts by February 28.
The move comes shortly after it was reported that BookMyShow.com has been in advanced talks with TPG Growth to raise up to $60m in funding.
BookMyShow’s decision is likely caused by the Reserve Bank of India’s (RBI) recent introduction of stricter guidelines on the issuance and operation of Prepaid Payment Instruments (PPIs), including mobile wallets.
The RBI has mandated full Know Your Customer for users of all digital wallets operating in the country.
In addition, the central bank has stated that minimum KYC wallets cannot have a balance of more than $153 (£108/€123) and this can be allowed only for the purchase of goods and services and not for remittances to other wallets or bank accounts.
BookMyShow has a presence in over 650 towns and cities in India, serving the entertainment demands of over 25 million customers, with over 10 million tickets booked every month on its platform.
The company has also started operations in countries such as Sri Lanka, Indonesia, New Zealand and the United Arab Emirates.