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  1. Huge relief! RBI grants two more months to eWallets for completing KYC

Huge relief! RBI grants two more months to eWallets for completing KYC

Giving a huge relief to the providers of digital wallets and prepaid instruments, the Reserve Bank of India (RBI) has granted them two more months (till February) to complete 'know your customer' (KYC) compliance of existing users. Earlier, the RBI had asked all the prepaid instruments including Paytm to complete minimum KYC of users by December 31, 2017.

By: | New Delhi | Published: December 30, 2017 2:49 PM
kyc, mobile kyc, mobile ekyc, rbi, ewallet deadline extended, kyc deadline extended Earlier, the RBI had asked all the prepaid instruments including Paytm to complete minimum KYC of users by December 31, 2017. (Source: Reuters)

Giving a huge relief to the providers of digital wallets and prepaid instruments, the Reserve Bank of India (RBI) has granted them two more months (till February) to complete ‘know your customer’ (KYC) compliance of existing users. Earlier, the RBI had asked all the prepaid instruments including Paytm to complete minimum KYC of users by December 31, 2017. The decision had come on October 11. However, according to a report by Times of India, this deadline has been increased as given the sheer number of e-wallet users in India, it was turning out to be difficult for the companies to meet the deadline. Paytm alone has over crore users on the Android platform alone, making it the biggest providers of digital wallets in India.

As per the report, Paytm founder Vijay Shekhar Sharma said that the company has already completed the process for over 5.2 crore customers. The company now plans to introduce OTP-based KYC verification. The Payments Council of India had represented to the RBI to extend the deadline as customers would suffer if accounts were frozen.

Earlier this month, the UIDAI had temporarily barred Bharti Airtel and Airtel Payments Bank from conducting Aadhaar-based SIM verification of mobile customers using the eKYC process, as well as e-KYC of Payments Bank clients.

The action was taken after the allegations of Bharti Airtel using the Aadhaar-eKYC based SIM verification process to open payments bank accounts of its subscribers without their ‘informed consent.’ UIDAI also took strong objection to allegations that such payments bank accounts are being linked to receive LPG subsidy.

UIDAI, in an interim order, “suspended e-KYC licence key of Bharti Airtel Ltd and Airtel Payment Bank Ltd with immediate effect,” sources with direct knowledge of the development said.

This means that the Airtel Payments Bank will not be able to open any new accounts with Aadhaar e-KYC. However, accounts can be opened through alternate methods, if available.

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