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Mobile wallets ask RBI to look at video KYC as a possible alternative: report

Mobile wallet companies have given inputs to the Reserve Bank of India on video-based KYC (know your customer) as a possible way to eliminate the physical leg of the current KYC process, the Economic Times reports, citing an unnamed payments company executive. The central bank is understood to have worked on these, the source told ET, but there is no clarity yet on the when the guidelines will be released. Wallet companies, like all other private firms, are not allowed to use Aadhaar for electronic KYC, according to last year's Supreme Court decision. They have until August 31 to fully comply with KYC requirements. Several wallet firms have tied up with retailers and other companies to ensure in-person KYC of users, but that has turned out to be expensive. As a result, "some of the major companies" are looking to shift to the Unified Payments Interface, which has no KYC requirement, ET's source said. Even if video KYC were introduced, it would not be a perfect solution as concerns about internet connectivity and customer awareness would remain, the report said; however, it would still reduce KYC costs somewhat. Paytm wants RBI to retain minimum KYC norms after deadline We had reported earlier this month that Paytm wants minimum KYC (Know Your Customer) norms for mobile wallet users to stay, even after the August 31 deadline. Doing away with minimum KYC is not at all customer friendly, Deepak Abbot, senior vice president, Paytm had said, adding that “as long as users are comfortable…

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