Giving much relief to various mobile wallet players, such as Paytm, PhonePe, Amazon Pay, etc. in India, RBI has extended the deadline to convert accounts with minimum personal details into full KYC compliant Prepaid Instruments (PPI) by 6 months.
In the same statement, RBI also mentioned that no further extension will be given for this purpose in the future. Since e-KYC and digital KYC recently came into development, these PPI issuers have been advised to ensure compliance with the laws of RBI.
If you can remember, RBI mandated KYC for e-wallets back in 2017. However, these mobile wallet players were still banking upon AADHAAR-based e-KYC for PPIs. Then, the honorable Supreme Court of India overruled this decision and made it quite tough for these private companies to get KYC-based customers.
Hemant Gala, head of Payments, Banking and Financial Services at PhonePe, says, “Post the Aadhaar judgment, the entire PPI industry was anxiously awaiting clarity on how to do KYC moving forward. This six-month extension will help settle things down smoothly.” – source businesstoday
We haven’t heard anything from Paytm, the largest player in India, yet.
According to a circular based on industry estimates, we can say that as much as 70 to 80% of mobile wallet users are yet to fully comply with the full KYC rule by the Supreme Court.