In the second week of October, the RBI introduced stricter norms for PPIs, as per which users of mobile wallets had until the end of this year to convert to the full KYC format. In a new development, the country’s central banking institution is currently “looking into” requests for an extension of the deadline.
In the interim period, the RBI reportedly received multiple requests from mobile wallet companies to extend the deadline.
As per the new guidelines, mobile wallets, which have been conforming to a minimum KYC format (such as simple verification of mobile number) will have to convert to full KYC wallet within 12 months of opening it. All existing wallet users have to convert to the full KYC format by this year end.
Full KYC means that the companies are required to collect “self-declaration of name and unique identification number of any of the officially valid documents.” To that end, most of the prepaid payment instruments operating in India are now asking users to link the wallets with their respective Aadhaar numbers.
Commenting on the development, a source requesting anonymity said, “There have been multiple discussions between stakeholders in the payments industry and the regulator and we have presented to them the operational difficulties faced by us, we think that the RBI would give us more time to implement the KYC norms.”
An Overview Of The Newly Instituted Norms For PPIs
In addition to making full KYC mandatory for mobile wallet users, the central bank stated that minimum KYC wallets cannot have a balance of more than $153 (INR 10K) and this can be allowed only for the purchase of goods and services and not for remittances to other wallets or bank accounts.