You need to do full KYC for mobile wallets too – but you can store twice the amount of money
- The new changes will affect companies like
Paytm, PhonePe, Mobikwik, and Google Payamong others.
- These mobile wallet operators had certain leeway with
KYCwhereas banks had to meet full KYC requirements.
- To cushion the need for new compliance, the
RBIhas also doubled the amount of money that can be stored in these wallets to ₹2 lakh.
- The RBI had earlier in October 2018 announced that KYC and interoperability will be voluntary for PPIs.
- Check out the latest news and updates on Business Insider.
KYC guidelines are mandatory mobile companies and financial services companies to identify and verify their customers, which is done at the time of opening an account and repeated at regular intervals. Currently,
The RBI had earlier in October 2018 announced that KYC and interoperability will be voluntary for prepaid payment instruments (PPIs) such as cards, wallets etc. This has been made mandatory now. “As migration towards interoperability has not been significant, it is now proposed to make interoperability mandatory for full payment acceptance infrastructure. To incentivise migration of PPIs to full KYC it is proposed to increase the current outstanding balance from ₹1 lakh to ₹2 lakh,” said Das.
The apex bank’s statement said that the move was being brought in ‘to promote optimal utilisation of payment instruments, and given the constraint of scarce acceptance infrastructure (like PoS devices, ATMs, QR codes, bill-payment touch points, etc.)’.
The new KYC norms for mobile wallets will not kick off immediately. The central bank said that detailed instructions for the same would be released soon.
Additionally, the RBI has also put forth another benefit for non-bank PPIs. "As a confidence-boosting measure, it is proposed to allow the facility of cash withdrawal, subject to a limit, for full-KYC PPIs of non-bank PPI issuers as well," said the statement from RBI.
AdvertisementWith this, wallets like that of Paytm, Mobikwik can be used to withdraw cash from ATMs. Earlier, banking PPIs like Yono app from SBI had this facility.
- Airtel's India business is back in the black after a very long time
- Sequoia and PayPal-backed Pine Labs completes a first close of $285 million funding round from new investors
- BJP spent significantly less on advertising during Kerala elections this year, its ad insertions on TV, Radio and Print decreased from 21% in 2016 to 1% in 2021
- Google I/O 2021: Here's what to expect from Google's biggest annual conference
- ISRO announces its decision to share technology to make portable medical oxygen concentrators developed by VSSC