Co-presented by

Amazon begins doorstep verification of KYC services for e-wallet users; cost of operations to burn hole in firm's pocket

After Paytm, now e-commerce giant Amazon has initiated doorstep KYC services for its e-wallet users, according to media reports, ahead of February deadline. This follows the Supreme Court judgement on Aadhaar, restricting the use of 12-digit unique identification number by private entities.

The Unique Identification Authority of India (UIDAI), the Aadhaar issuing authority had asked digital wallets and mutual funds registrars to stop using Aadhaar data.

"...Aadhaar is used as a means of authentication for availing services, benefits and subsidies. Welfare schemes funded from the consolidated fund of India such as PDS (public distribution system), scholarship, mid-day meals, LPG subsidies, free education, etc, ensure that the Right of Life and Dignity of citizens are being enforced, which includes justice (social, political and economic)," the UIDAI had said.

 Amazon begins doorstep verification of KYC services for e-wallet users; cost of operations to burn hole in firms pocket

Representational image. Reuters

A five-judge constitution bench headed by Chief Justice Dipak Misra held that while Aadhaar would remain mandatory for the filing of IT returns and allotment of Permanent Account Number (PAN), it would not be mandatory to link Aadhaar to bank accounts and telecom service providers cannot seek linking of Aadhaar for mobile connections.

What this means is that e-commerce firms are back to gathering physical paper formats and sending staff to houses to collect papers, verification, etc. which raises the costs, unlike online registration.

Earlier last week, Paytm Payments Bank Ltd (PPBL) resumed Know Your Customer (KYC) process as well as onboarding new customers after receiving a formal nod from the Reserve Bank of India (RBI).

PPBL in June last year was asked to stop adding new customers after an audit by the RBI that made some observations about the bank’s KYC processes.

“PPBL has received a formal nod from the RBI to start onboarding new customers while resuming KYC for the bank as well as wallet customers starting from December 31, 2018,” PPBL said in its latest statement.

The statement added that potential customers would now be able to open their savings or current account with PPBL.

Payments banks can accept deposits from individuals and small businesses up to Rs 1 lakh per account.

PPBL aims to acquire 100 million additional customers by the end of 2019, the statement said.

“PBBL is on a mission to facilitate the last-mile delivery of banking services to each and every Indian. It also envisions catalysing the digital adoption and acquainting more people with the touch-of-a-button experience,” Satish Gupta, PPBL managing director and CEO of Paytm Payments Bank said.

Paytm commenced its payments bank operations in 2017. Paytm founder Vijay Shekhar Sharma holds the majority share in PPBL, with the rest being held by Alibaba-backed One97 Communications. However, the Chinese entity does not have a direct shareholding in the payments bank.

--With inputs from PTI

 

 

To keep watching India’s No. 1 English Business News Channel – CNBC-TV18, call your Cable or DTH Operator and ask for the Colors Family Pack (inclusive of 24 channels), available for Rs. 35/- per month, or subscribe to the channel for Rs. 4/- per day.

To keep watching the Leader in Global Market & Business News – CNBC-TV18 Prime HD, call your Cable or DTH Operator and ask for the Colors Family HD Pack (inclusive of 25 channels), available for Rs. 50/- per month, or subscribe to the channel for Rs. 1/- per day.

Your guide to the latest election news, analysis, commentary, live updates and schedule for Lok Sabha Elections 2019 on firstpost.com/elections. Follow us on Twitter and Instagram or like our Facebook page for updates from all 543 constituencies for the upcoming general elections.

Updated Date: Jan 11, 2019 11:33:00 IST