Paytm wants minimum KYC (Know Your Customer) norms for mobile wallet users to stay, even after August 31, when the Reserve Bank of India’s mandatory full KYC requirements for mobile wallets will kick in, according to an Economic Times report. Minimum KYC wallets are those for which the operator uses only the user's mobile number and any one government identification number to authenticate the account. According to Paytm's website, such a KYC is valid only for 18 months. A full KYC, on the other hand, requires an in-person verification with your PAN card and proof of address. Around 50% of Paytm’s entire user base are still on minimum-KYC accounts, the ET report says. Doing away with minimum KYC is not at all customer friendly, according to Deepak Abbot, senior vice president, Paytm. He says that “as long as users are comfortable with limitations” with minimum KYC wallets, there is no harm in allowing them to operate after August 31. Paytm has been in touch with the RBI and is banking on the recommendations made by the Nandan Nilekani-led committee for deepening digital Payments (see below) to discuss the issue. Why Paytm wants minimum KYC to stay In short, because performing a full KYC is expensive and could also alienate many users of mobile wallets. Abbot said that the average cost of doing an in-person KYC is anywhere between ₹260 and ₹270 per customer, and for a firm like Paytm, which has 100 million MAUs, the resultant cost will be around ₹2,500 crore.…
Paytm wants RBI to retain minimum KYC rule for wallets even after full-KYC requirements kick in
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