RBI has refused to extend KYC deadline for PPI and wallet customers

The Reserve Bank of India (RBI) has decided not to extend the deadline for mandatory KYC submission by prepaid payment instrument (PPI) and mobile wallet customers that falls tomorrow, February 28.

The RBI had fixed February 28 as the deadline, extending the period from the initial compliance date of  31 December 2017.

“Sufficient time has already been given to meet the prescribed guidelines,” B P Kanungo, RBI’s Deputy Governor, said to reporters on Monday evening.

Customers who’ve failed to comply KYC deadline will not lose their money, but will not be able to further reload either until the compulsory details are filled, Kanungo added. 

The RBI announced that KYC is mandatory for all transactions, regardless of value. Earlier this month, the Payment Council of India (PCI) had requested the central bank to waive off the full KYC requirements for transactions valued below Rs 10,000. 

About 55 non-banking PPIs and 50 bank-promoted wallets are currently operating.

“For a B2B (business-to-business) service provider like Edenred, it is comparatively better as more than 80 per cent of our customers have already linked their KYC,” said Subin Kumar, Head, Marketing and Channels, Edenred. “The rest 20 per cent is a challenge but we have issued reminders to the corporations and customers, resulting in 10 per cent hike over the weekend,” he said.

Deputy Governor Kanungo said: “Customers can continue to undertake transactions for purchase of goods and services as per the available balance, but will have to fulfil the KYC requirements before remitting money or reloading their wallet.”

“It is necessary to pave the way for inter-operability between PPIs, bank accounts, and cards in a phased manner,” Kanungo added.