Alert! Most e-wallets might become invalid by February-end
New Delhi: After tightening E-commerce norms, digital wallets might be next. It may be noted that in its Aadhaar judgement, Supreme Court barred private entities from using Aadhaar data for KYC. According to a Times of India report, lakhs of mobile wallets might become invalid by the end of next month as the companies are not able to comply with RBI norms of user-data verification.
The report stated that according to estimates so far, over 80% of digital wallet users have not yet complied with KYC. The users can complete partial KYC using OTP verification method but, in order to complete full KYC, they need to submit documents like address proof and ID proof. Since this process seems tedious, people are now shifting to UPI (Unified Payments Interface) transactions.
The data is from RBI and National Payments Corporation of India (NPCI) suggests that while the use of wallets grew exponentially post demonetisation, the numbers have gone down in the last couple of months. However, in December last year, UPI witnessed 620 million transactions.
A Bengaluru-based payments company was quoted in the national daily report saying, “There has been a constant discussion with the banking regulator on extension and alternative KYC tools but nothing has been accepted as of now. ” Other companies are also facing hurdles to comply with the KYC norms.
Platforms like Amazon and Paytm are expected to be impacted more because of their large user-base. Since platforms like PhonePe are more focused on UPI, they are less likely to be impacted as much. Worth mentioning here is that Amazon recently has started doorstep service where employees are visiting users’ doorstep to collect KYC documents.