India has seen a rapid disintermediation of the payments system that was once restricted to only banks and their traditional clearing facilities. Entrepreneurs abound in the recent digital payment interfaces such as prepaid instruments like mobile wallets. These will replace the traditional clearing systems such as RTGS (real time gross settlement) as also online facilities provided by banks and telecom companies. Unified Payments Interface is in itself a game changer and only banks have been allowed by the Reserve Bank of India (RBI) to become payment service providers keeping wallets and other prepaid instruments out, thus giving a boost to banks in the race to secure a big slice of the payments pie. Poised at a juncture when people are also transforming payment habits by embracing a particular payment mode, especially the unbanked segments of society, the digital transaction regulatory framework requires a comprehensive legal framework assessment.