RBI extended the deadline for Mobile wallets to identify the digital KYC route.
27th, February 2019 - News
Today Reserve Bank of India, again extended the deadlines for mobile wallet companies to find the route for KYC norms. This is the biggest relief for the mobile wallets as they can use this extension to find the best possible route for digital KYC updates.
After a Supreme Court ruling on privacy violation stopped the Aadhaarbased electronic KYC, mobile wallet companies had to resort to paper-based KYC. If collecting paper documents from customers is an expensive proposition, then managing those documents is also a challenge.
With the RBI saying on Monday that the extension could be used for putting in place alternative systems of completing the KYC process, the industry hopes new digitised KYC process would replace paper KYC
Mobile wallet companies too hope that the banking regulator would follow the markets watchdog Sebi and allow video KYC, which will help avoid papers. Source had written in its December 10 edition that the RBI was planning to allow live video KYC for authentication of wallet customers after eKYC stopped.
As senior payment executives said, if the KYC process does not get simplified after six months, the share of full-KYC wallets will continue to be in low single digits. Ola, which runs its own wallet service Ola Money, has been asking customers to submit paper documents to their driver partners. A customer needs to upload soft copies of identification documents, click a selfie and then submit the paper documents.
“The whole process is cumbersome, not to mention the fact that paper documents with personal details of the customer can be misused by the agents for multiple purposes, which is a privacy breach,” Source.
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