Mobile wallet firms like Paytm, PhonePe and Amazon Pay have recently been given relief from the government. The Reserve Bank of India Wallet Service Providers have once again received the permission to provide services to accounts without know-your-customer (KYC).
|Good news from the government for Paytm, Amazon-Pay and Phone-Pay users|
Such accounts were earlier limited services and had to face cancellation. Customers will get a new option of minimum KYC accounts, which is similar to the recently launched low KYC PPI accounts of the Central Bank.
The accounts of about 200 million mobile wallet users were to be canceled by the regulators, which can now be relieved. The last date for users to upgrade non-KYC accounts to full KYC was kept on February 29 and the accounts would be closed after that. It also included many accounts whose authentication was done with the help of Aadhaar card and it was considered invalid after the Supreme Court ordered in 2018.
No accounts will be canceled
The Central Bank recently introduced the new KYC system for customers. The imperative of Aadhaar verification was later removed for banks. Now customers have been given alternative ways to get KYC done, as well as their e-wallet account will not be canceled if full KYC is not done. The prepaid payment instrument (PPI) was introduced by the Central Bank in December last year, in which the monthly recharge limit has been given Rs 10,000 and payments can be made with the help of it.
Hence KYC was to be done
Actually, there are many companies offering e-wallets in India, such as Paytm, FreeCharge, MobiKwik, Tez and PhonePe. Paytm is the most used among them. The use of e-wallet had increased significantly since demonetisation in India, after which the Reserve Bank of India (RBI) said that companies offering e-wallet service will also have to do full KYC verification of their customers. After this, users had to get full KYC to use all the features.