Full KYC deadline extended: Paytm, Amazon Pay and other e-wallet users to benefit

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Published: February 26, 2019 2:15:40 PM

If full KYC is not done within the last date, then no further credit shall be allowed in such e-wallets i.e. adding more money will get disabled.

full KYC, Full KYC deadline, How to complete full KYC, full KYC documents, KYC, e-wallets, e-wallets bank transfer,To complete full KYC, most e-wallets have made provision to upload two documents on their app followed by in-person verification.

The Reserve Bank of India has extended the deadline for the e-wallets to complete Know Your Customer (KYC) process of its users by six months. The deadline was supposed to end on February 28, 2019.

Currently, users who have not completed full KYC formalities are being able to operate the e-wallets under minimum KYC requirements whose validity is normally 12 or 18 months from the day the e-wallet is first used.

What if full KYC is not done

If full KYC is not done within the last date, then no further credit shall be allowed in such e-wallets i.e. adding more money will get disabled.

However, the e-wallet user will be allowed to use the balance available in the e-wallet.

But, with RBI extending the full KYC deadline, the users of Prepaid Payment Instruments (PPIs) such as Paytm and Amazon Pay can heave a sigh of relief and continue to use their e-wallets by adding more money from credit card, net banking, for the time being.

What if full KYC is done

Even though the deadline has been extended, as an e-wallet user, it helps to migrate to full KYC. Once the full KYC is completed, the e-wallet users may stand to benefit primarily on four fronts:

1. Higher wallet limit: With full KYC, one gets a higher limit to be added to the e-wallet and even the spend limit is high. Under limited KYC, the amount loaded in such e-wallet during any month shall not exceed Rs.10,000 but under full KYC, you get a higher load and spend limit of Rs 1 lakh per month.

2. Higher bank transfer limits: In a full KYC compliant e-wallet, 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). For example, in case of HDFC’s e-wallet, one can transfer up to Rs 20,000 per day to a bank account and Rs 50,000 in a month to HDFC Bank and non-HDFC banks.

3. Higher P2P transfer limits: One of the biggest advantages of digital wallets is the ability to easily send money to your friends, family and others on your contact list. As a full KYC customer, you can send up to Rs 1 lakh a day or month.

4. Adding more beneficiaries: If you are KYC compliant, you can add 3 beneficiaries a day and up to 25 in total. Digital wallets provide the facility of ‘pre-registered beneficiaries’ whereby the e-wallet user can register the beneficiaries by providing their bank account details, details of PPIs issued by the same issuer (or different issuers as and when permitted), etc.

How to complete full KYC

To complete full KYC,  most e-wallets have made provision to upload these two documents on their app – A government issued address proof such as Driving license/Passport/Voter card and the PAN card. Subsequently, an in-person verification is to be done for which some PPIs are arranging a visit to one’s residence to verify the original documents.

A digital wallet is a convenient tool to make a wide range of cashless payments for tickets, cab rides, groceries, shopping, etc. As PPI issuers are operating a Payment System, provisions of Prevention of Money Laundering Act, 2002 and Rules are also applicable to all PPI issuers. Therefore, all entities need to put in place the necessary systems to ensure compliance with the guidelines.

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