Can customers make transactions after expiry of KYC deadline for mobile wallets?

Mumbai: The Reserve Bank has said there will not be any extension to the February 28 deadline for mandatory KYC-compliance by prepaid wallet customers. This has led to frenzy among many users over issues such transaction procedure, status of remaining balance in the account etc.

RBI has clarified that 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.

RBI deputy governor BP Kanungo has said that in the event PPI issuers not obtaining the KYC-related inputs within the timeline from their customers, customers will not lose their money.

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.

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.

Apart from paying for purchase of goods and services, PPIs are used extensively for remittances currently, which offers a very lucrative business opportunity for agencies involved in carrying out remittances.

As per the laws, a customer can fulfil the KYC requirements by submitting any document like the Aadhaar number, voter ID, among others.

With Agency Inputs