KYC for wallets: RBI sticks to February 28 deadline

TIL Desk/Business/New Delhi/ The Reserve Bank on Monday 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 fulfill the KYC (know-your-customer) norms, the central bank said on Monday.”Sufficient time has already been given to meet the prescribed guidelines.

In the event PPI issuers not obtaining the KYC-related inputs within the timeline, customers will not lose their money,” deputy governor B P Kanungo told reporters in Mumbai on Monday evening.

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.