Thousands of users of prepaid payment instruments (PPI) such as mobile wallets were in the lurch over completing their KYC (know your customer) process even as the deadline ended on February 28.
While most users were not aware on the process for completing the KYC, others were waiting for confirmation from PPI platforms.
Several disgruntled and confused e-wallet users took to social media slamming the companies for being unable to update their full KYC on popular apps such as Paytm, Ola Money, Amazon Pay, PhonePe and Mobikwik among 50 other non-banking wallets and a similar number of banking apps such as SBI Buddy and PayZap.
While the wallet players have been sending several updates and notifications to comply with the full KYC norms as stated by the Reserve Bank of India, it seems users found the the process tedious. “@Paytm @Paytmcare..for updating KYC..in person verification and visit nearby centre..both options are not available at our location..pin 691306, Anchal, Kollam district, Kerala... “Kindly update the app with online Aadhaar authentication on Paytm,” read one tweet from one Joshin Joseph. Another tweet from Neha@nehasupnfan said, “@Paytm how exactly is a person supposed to fill the KYC if the app doesn’t allow me to do so? Always errors out!”
While none of the PPI platforms gave out the number of users who were able to complete the KYC norms, industry estimates suggest that only about 10-20 per cent of users may have completed the process.
Praveen Dhabhai, COO at Payworld, an assisted wallet player in the rural India carrying out remittances said, “Ninety per cent of the transactions that occur on wallets are remittances. We assist rural people to use wallets for money transfers and this is going to be really disheartening because the deadline of the submission of KYC has come during Holi, a time when remittances are the highest..”
Sriram Jagannathan, Co-Chair of PPI Committee of Payments Council of India, said that while the industry has complied with RBI’s directions, there will be a significant drop in transactions and many PPI players will be shifting their businesses to other areas. “Many customers will go back to cash, negating significant efforts made to build a prepaid digital payment behavior. It is not economically viable for wallets to do KYC similar to bank accounts.”