MUMBAI: The RBI has said that e-wallet customers can continue to use money lying in their account for purchases even after February 28. They can also send the money back to their banks. However, remitting funds to others and reloading the e-wallet would require completion of know your customer (KYC) norms, for which the deadline is this month-end.
Issuers of pre-paid instruments (PPIs) — the regulatory term for e-wallets that hold money — are racing against time to get customers to comply with KYC guidelines. These include players like Paytm, MobiKwik, Ola Money and Amazon Pay.
RBI deputy governor B P Kanungo said on Monday that there will not be any extension of the February 28 deadline. “Sufficient time has already been given to meet the guidelines. If PPI issuers do not obtain KYC-related inputs within the timeline from their customers, then customers will not lose their money,” Kanungo told reporters.
There are currently 55 non-bank PPI issuers that have been licensed by the RBI. In addition, there are 50 e-wallets promoted by banks.
Originally, the RBI had given them until December 31, 2017, to become KYC-compliant. This was later extended to February 28.
A senior banker told TOI that bank-promoted e-wallets can become KYC-compliant if the customer links his card account to the e-wallet account. The largest e-wallet issuer Paytm, which is now a payments bank, is the largest issuer of pre-paid wallets. The company has said that it has set aside a budget of $500 million (Rs 3,250 crore) to complete KYC of its 100 million e-wallets.