While the deadline for completing KYC process for e-wallets is February 28, the customers can continue to use their wallets even beyond the deadline with a few riders. We take a look at what users can do.
With the deadline for completing KYC procedures for e-wallets just one day away, as RBI directs that all customers must be KYC compliant by February 28, there’s no reason to panic, as the customers can still continue to use their wallets after the deadline. RBI Deputy Governor BP Kanungo says that “customers will not lose their money,” adding that the customers can continue to undertake transactions for purchase of goods and services as hitherto to the extent of available balance in the PPI. However, while reloading their e-wallets, the customers will have to comply with the KYC requirements.
According to RBI’s directive dated October 11, 2017, for Prepaid Instruments up to Rs 10,000 per month, the customers can complete the minimum KYC requirements by submitting their mobile number verified with One Time Pin (OTP) and self-declaration of name and unique identification number of any of the ‘officially valid document.’ However, the customers can use these e-wallets only for purchase of goods and services. Funds transfer from such PPIs to bank accounts and also to PPIs of same / other issuers shall not be permitted. Further, within 12 months of furnishing minimum KYC details, all users need to get full KYC done.
A Paytm blog clarifies that while according to the RBI’s latest guidelines, minimum-KYC wallet users would not be allowed to send money to each other or transfer money to any bank account. Hence, if customers wish to avail such facility, they will need to comply with RBI’s full KYC procedures.
While the users have an option to remain minimum KYC users, it is to be noted that, if they fail to comply with even the minimum KYC requirements, such users will not be able to add money into your e-wallet even up to Rs 10,000 unless they complete at least the minimum KYC requirements. The other restrictions which apply to minimum KYC compliant users will continue to apply to this category of users as well.