Complete KYC by Feb 28 or Close E-Wallets with PayTM, Oxigen and Others

The Reserve Bank of India has refused to extend the deadline for linking your Aadhar and other identity documents (KYC) with your PPI account. PPI account stands for prepaid payment instruments that we use in the form of digital wallets like PayTM or Oxigen.

No KYC May Get Your E-Wallet Closed

The RBI after refusing to extend the deadline of February 28, 2018 for KYC verification has said that those who have not completed the KYC formalities would not lose their money and they can transfer the amount back into their bank accounts.

RBI said that though one will not lose his/her money but they cannot transfer it to someone else’s account or can receive any. The RBI had earlier given the last date as December 31, 2017 but it was extended till February 2018. The deputy governor of RBI said that enough time has been given and they would not extend it at any cost.

One should know that there are 55 non-banking PPI wallets active in India that are permitted by the central bank. In addition, 50 wallets are endorsed by the banks. Companies that are offering wallet service are in fear of losing their customers as those who have yet not completed KYC formalities may close their PPI accounts.

Wallet Balance of INR 12,000 crores at Stake?

Nearly 80% of the transaction that is around Rs 12, 000 crores is at the risk of going back to cash if the situation continues. A senior executive of one of the wallet company claimed that the company has not even completed 50% of the KYC verification. He said that customers are not interested in doing so and we fear that we will lose them.

It is possible that such customers may return to the conventional method of payment that is cash and that will be a big blow to both the wallet companies and the government’s digital India initiative. Many of such companies have claimed that this initiative of RBI is irrational and is killing our business.

If one has not yet done KYC verification then one may not be able to load or send money to another. This may push customers to close their accounts of their wallets. Presently a business worth Rs. 14000 crores is carried out using PPI. In which 80% is at stake.