As the RBI has refused to extend deadline for updating KYC for mobile wallets beyond February 28, customers will have to necessarily complete at least minimum KYC if not full-KYC to continue to use their e-wallets. While there’s no reason to panic as customers can still continue to use their wallets after the deadline to the extent of the balance in these e-wallets for purchase of goods and services, they will necessarily have to provide at least their minimum KYC details while reloading the wallets. However, the customers can choose to remain minimum KYC users. We take a closer look how you can remain a minimum KYC user.

Minimum KYC

The customers opting for completing only minimum KYC can use e-wallets and other pre-paid instruments with certain restrictions such as-

  1. The balance in these instruments is capped at Rs 10,000 per month.
  2. The the customers can use these mobile wallets wallets and other such instruments only for purchase of goods and services. Other uses such as funds transfer from wallets (such as Paytm) to bank accounts and also to PPIs of same other issuers shall not be permitted.
  3. Within 12 months of furnishing minimum KYC details, all users need to get full KYC done.

Full KYC

According to RBI directives, a full-KYC compliant user can store up to Rs 1 lakh in these mobile wallets. Further, they can even transfer money to other wallets and bank accounts. RBI says that the funds can be transferred ‘back to source’ (payment source from where the PPI was loaded) or ‘own bank account of the PPI holder’ (duly verified by the Issuer). However, PPI issuers (such as Paytm) shall set the limits taking into account the risk profile of the PPI holders, other operational risks.

Non-KYC compliant users

Apart from the other two categories, this category of users can continue to use their wallets beyond February 28th until the balance lasts for purchase of goods and services. However, if they wish to reload the wallets, the users will have to complete at least minimum KYC process.