Millions of mobile wallets earmarked for deletion in India for falling foul of know your customer regulations are set to be saved by a forthcoming change in stance from the country’s central bank, The Economic Times (ET) reported.
Under current Reserve bank of India (RBI) regulations, companies including Paytm and Amazon Pay would have been forced to end support for users failing to meet strict requirements on personal data designed to verify the identity of users.
Providers had until the end of February to upgrade consumers they had minimal information on to be “full KYC” compliant, a move requiring the collation of much more detailed data.
However, ET’s sources said the RBI was set to relax its stance and allow accounts to remain active with a lower level of detail on users. Under updated rules some specific detail would still be required and transaction limits on these accounts put into place.
The RBI has been at loggerheads with the country’s mobile wallet providers since unveiling the regulations in 2017. Its original deadline of February 2018 was extended twice as a result of a legal case on how providers were allowed to collect data on users.
In April 2018 operators voiced concern consumers’ reluctance to provide the required data was hampering the uptake of mobile wallets.Subscribe to our daily newsletter Back