wordpress blog stats
Connect with us

Hi, what are you looking for?

RBI extends wallets’ KYC compliance deadline by 6 months

Wallets

The RBI has given wallets another 6 months to comply with KYC requirements, extending from the earlier deadline of February 28, 2019. The RBI said that the extension was granted "based on requests received from various stakeholders" given that alternative systems had to be figured out to replace Aadhaar e-KYC. Around 70-80% of the wallet user base is yet to comply with KYC norms, the Times of India reported. Mobile wallets were banking on Aadhaar for e-KYC, but were barred from doing so after the Supreme Court ruling on the Aadhaar matter struck down Section 57 which allowed the private usage of Aadhaar. According to RBI's master circular on prepaid payment instruments (PPI), users who have not completed KYC will not be allowed to load money into their wallets. PPI operators have also been directed to give a one-time option to users to transfer their outstanding wallet balance to bank accounts without levying any charges. Wallet companies are now faced with physical KYC compliance, which is more costly than Aadhaar eKYC, and the customer movement to simpler payment options like UPI. KYC alternatives and dipping transaction volumes Even after the RBI had introduced KYC norms early in 2018, payment companies had seen a 40-45% decline in transactions. The RBI had allowed eKYC for the first 12 months, after which full KYC would need to be done. At the time, Paytm said that 100 million of its estimated 282 million registered users had completed the KYC process. Earlier in February, industry body…

Please subscribe/login to read the full story.
Written By

I cover health, policy issues such as intermediary liability, data governance, internet shutdowns, and more. Hit me up for tips.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

News

RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.

News

Both the IT Minister and the IT Minister of State have chosen to avoid the actual concerns raised, and have instead defended against lesser...

News

The Central Board of Film Certification found power outside the Cinematograph Act and came to be known as the Censor Board. Are OTT self-regulating...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ