RBI introduces strict KYC norms to keep e-wallets safe

The wallet users have been asked to comply with the full KYC format by the end of this year.

The Reserve Bank of India (RBI) has introduced stricter Know Your Customer (KYC) norms for wallet users.
 
The wallet users have been asked to comply with the full KYC format by the end of this year.
 
The central bank has also put in place the fraud detection norms to prevent fake wallet transactions. 
 
Complying with the KYC will allow customers to move money between wallets of different companies and banks seamlessly through Unified Payments Interface (UPI).
 
Even mobile wallets will have to convert to full KYC wallet within 12 months of opening it.
 
These wallets were working after conforming to a minimum KYC format, like simple verifying mobile numbers. 
 
The central bank has also increased the networth requirements for players in this space. 
 
For a PPI licence, companies need a positive networth of Rs 5 crore at the time of application against Rs 2 crore previously. 
 
Source: ET

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