Relief to e-wallets: Reserve Bank of India extends KYC compliance norms by six months

E-wallet companies were caught in a bind over looming deadline that was to end on 28 February

Press Trust of India February 26, 2019 09:37:58 IST
Relief to e-wallets: Reserve Bank of India extends KYC compliance norms by six months
  • Paytm, MobiKwik, Flipkar PhonePe and Amazon Pay among others to be major beneficiaries

  • E-wallet companies were caught in a bind over looming deadline that was to end on 28 February

  • The deadline was extended on requests received from various stakeholders to increase the end-February timeline

Mumbai: In a relief to e-wallet companies, the Reserve Bank of India on Monday extended by six months the deadline for compliance with Know Your Customer (KYC) norms, for prepaid payment instrument (PPI) issuers.

The earlier deadline was 28 February.

"Based on requests received from various stakeholders to increase the above timeline on account of difficulties in undertaking Aadhaar e-KYC and time necessary to put in place alternative systems for completing the KYC process, it has been decided to allow PPI issuers additional time of six months for completion of the KYC process," the RBI said in a statement.

Relief to ewallets Reserve Bank of India extends KYC compliance norms by six months

Representational image. REUTERS

PPIs are instruments that facilitate purchase of goods and services, including financial services and remittance facilities, against the value stored on such instruments.

E-wallet companies were caught in a bind over looming deadline as companies were apprehensive that they will not be able to meet the central bank's deadline to complete KYC of all customers by February-end.

Queries sent to Paytm, MobiKwik, Flipkar PhonePe and Amazon Pay did not elicit any response.

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