The Reserve Bank of India (RBI) has said that e-wallet clients can keep on using cash lying in their wallets for purchases even after the reset of KYC on February 28. The users can also send the cash back to their banks. However, transferring assets to others and reloading the e-wallet would require consummation of know your KYC norms, for which the due date is this month-end. Issuers Prepaid instruments (PPIs) the administrative term for e-wallets that hold cash — are hustling against time to motivate clients to follow KYC rules. These incorporate players like Paytm, Ola Money, MobiKwik, and Amazon Pay.
E-Wallet Balance Remains Same After KYC Deadline on 28th February
RBI deputy governor B P Kanungo said on Monday that there will not be any extension of the February 28 deadline. “Sufficient time has already been given to meet the guidelines. If PPI issuers do not obtain KYC-related inputs within the timeline from their customers, then customers will not lose their money,” Kanungo told reporters.
At present, there are 55 non-bank PPI issuers have been licensed by RBI. And also, 50 e-wallet apps were promoted by banks. Initially, the RBI had given them until December 31, 2017, to end up KYC-complaint. This was later reached out to February 28. A senior investor disclosed to TOI that bank-advanced e-wallets can move toward becoming KYC-complaint if the client interfaces his card account to the e-wallet account. The biggest e-wallet backer Paytm, which is currently a payments bank, is the biggest guarantor of prepaid wallets. The organization has said that it has put aside a financial plan of $500 million (Rs 3,250 crore) to finish KYC of its 100 million e-wallets. The Know Your Customer (KYC) deadline will be completed by tomorrow, 28th February. Yet, the customers need not worry about their e-wallet balance.
“Sufficient time has already been given to meet the prescribed guidelines,” the deputy governor said hinting that there would not be any more extension of deadline.
“PPI (Pre-paid instrument) issuers not obtaining the KYC related inputs of their customers within the timeline, the customer will not lose their money,” said B.P. Kanungo, deputy governor of RBI. “Reloading of the PPI and remittances can resume after completing the KYC requirement.”
“They (customers) can continue to undertake transactions for purchase of goods and services as thereto to the extent of available balance in the PPI,” he said.
PPIs obviously discover the KYC prerequisite a testing work as they fear business loss if stricter rules are actualized with lion’s share clients adhering to least KYC. A wallet client simply needs to join by giving the mobile number, properly verified. The experts find it excessively helpless as it could be abused by even terrorists.