Reserve Bank says no extension date for KYC-compliance by prepaid wallet customers

Vastavam web: The Reserve Bank today said there will not be any extension to the February 28 deadline for mandatory KYC-compliance by prepaid wallet customers.However, customers who have balances in such wallets or prepaid payment instruments (PPIs) need not worry about their money even if they do not do the KYC (know-your- customer) norms, the central bank said today.There are 55 non-banking PPIs operational now, apart from 50 wallets promoted by banks. They were initially given time till December 31, 2017, to make those accounts KYC- compliant, which was extended to February 28.

According to media reports, PPIs were feeling that the KYC requirement was very challenging and if the guideline were to be implemented, they feared losing business as 90 per cent customers have been onboarded using the minimum KYC, which is giving the telephone number.”The guidelines are designed to strengthen safety and security of transactions and customer protection,” Kanungo said, adding KYC requirements are necessary to usher in inter-operability.

As per the master directions issued on the matter last October, the RBI wants to make inter-operability between the PPI wallets and also with bank accounts and cards possible.Kanungo said customers can continue to undertake transactions for purchase of goods and services as per the available balance, but will have to fulfill the KYC requirements before remitting money or reloading the wallet.