As a relief to users who still need to get their KYC done, the Reserve Bank of India (RBI) has further extended the deadline for the ‘Know Your Customer’ or KYC procedure by six months.
To recall, the previous date to get the KYC done was February 28, 2019, following which the users’ e-wallets would have become invalid.
RBI, in a statement, said: “Based on requests received from various stakeholders to increase the above timeline on account of difficulties in undertaking Aadhaar e-KYC and the time necessary to put in place alternative systems for completing the KYC process, it has been decided to allow PPI issuers additional time of six months for completion of the KYC process.”
For those who don’t know, previously, e-wallets required users to conduct Aadhaar-based KYC, which was eventually barred after the Indian Government restricted private companies from using Aadhaar cards to verify users under section 57.
The switch from the Aadhaar-based eKYC to the physical one requiring other documents is costlier and leading to users’ inclination towards UPI-based services.
Given that nearly 70% to 80% of e-wallet users are still not in compliance with KYC guidelines, this news will bring relief to a large number of people.