- February 28 is last day to update KYC for e-wallets
- Aadhar Card, PAN Card, Voter Card, are among official documents
- Industry loss likely to be in the range of Rs 12,000 crore
If you are one among the regular users of online wallets such as Google Tez, Airtel Money, Freecharge, JioMoney, MobiKwik, Oxigen, Ola Money, or Paytm then you would have received a message from your service provider asking you to update KYC details.
Well, the RBI (Reserve Bank of India) directed prepaid instrument operators and wallet-providers to ensure KYC details. A directive to this regards was communicated with most operators on October 11 2017. The RBI directed that instruments with a limit of Rs 10,000 must have KYC details of their customers updated with their systems, or risk losing business.
As on date there are 55 private PPIs (Pre-Paid Payments Interface) started by private entities and startups such as Paytm, Google Tez, OlaMoney, JioMoney, MobiKwik, Airtel Money. An additional 50 PPIs were started by banks such as HDFC Bank, ICICI Bank, State Bank of India, etc.
The RBI directive has created panic with users getting messages from various wallet providers to comply with KYC details latest by February 28. Sodexo for instance, has been sending regular updates to its customers for the past one week.
The update may sound like nuclear Mechanics, but is quite simple. You need to have valid documents.
Here are documents that are accepted: (This is according to an RBI document dated 26th August 2014):
- Driving Licence
- Voter's ID Card
- PAN Card
- Aadhar Letter
- Job Card issued by NREGA signed by a state government official
- e-KYC done by UIDAI is also accepted
There are various ways and means to complete the KYC process. For instance, Sodexo has a digital website- kyc.sodexobrs.com to update KYC details of customers who use a Sodexo card. On the Sodexo site, you first enter details such as Registered Mobile/Email, last four digits of the card number and fill in the captcha details to authenticate. In the next window, you add details of your official KYC documents. In case you are willing to share the Aadhar number, an SMS of the Aadhar number to a mobile-number offered by Sodexo should complete the KYC update.
The process remains almost the same for services of Tez, Paytm and other wallet service providers. But there has been a growing number of users who either do not have access to the documents. Users have also refrained from sharing details of Aadhar over privacy concerns.
BP Kanungo, RBI's Deputy Governor said that customers will not lose their money for not updating KYC details. "They can continue to undertake transactions for purchase of goods and services as thereto to the extent of available balance in your PPI."
You can also pay for your taxi bills, and e-commerce shopping. Customers may not be able to reload and remit money from their wallets. Kanungo said, "PPI (Pre-paid instrument) issuers not obtaining the KYC related inputs of their customers within the timeline, the customer will not lose their money. Reloading of the PPI and remittances can resume after completing the KYC requirement."
Here is a tweet from S Ravichandran, a Paytm User.
When done with world class systems and creativity , just tell me how I can transfer the money from paytm wallet back to the sourcing credit card. I don’t want to put my KYC info with paytm ( don’t trust your creativity); don’t want to lose the money or pay a fee for the xfer— S Ravichandran (@ravichso) February 27, 2018
Industry insiders have asked RBI to extend the deadline considering the value of transactions undertaken by PPIs. According to RBI data, the number of PPI transactions in December 2017 stood at 319.85 million, up from 236.16 million the previous month. But PPIs have often complained that customers were acquired using minimal KYC, and nearly 90% business could be lost in the event the RBI stuck with its deadline. The loss is estimated at Rs 12000 crore.
According to unverified reports, BookMyShow has already indicated that it is shutting down its wallet business.
Paytm on its part has clarified that customers must comply with minimum-KYC wallet guidelines in line with RBI's direction. "Users would not be allowed to send money to each other or transfer money to any bank account. Hence, if customers wish to avail such facility, they will need to comply with RBI’s full KYC procedures," read a report.