Paytm wallet not working? Incompletion of KYC is the reason: 5 key points to know

If your Paytm or other mobile wallet is not working then you could blame the recent KYC norms, that are being effective from today. 

The Reserve Bank of India on Wednesday denied to extent the February 28 deadline for mandatory KYC-compliance by prepaid wallet customers.

But what would happen if you have balance in your prepaid mobile wallets? Below we have break it down the details related to the said issue; 

1. If customers who have balances in their prepaid mobile wallets or prepaid payment instruments (PPIs), they do not need to be worried even if they do not do the KYC (know-your- customer) norms, they can go ahead with the procedure and continue to use money thereafter, the central bank said on Wednesday. 

2. There are 55 non-banking PPIs operational now, apart from 50 wallets promoted by banks. They were initially given time till December 31, 2017, to make those accounts KYC- compliant, which was extended to February 28. 

3. As per the laws, a customer can fulfil the KYC requirements by submitting any document like the Aadhaar number, voter ID, among others.

4. PPIs were feeling that the KYC requirement was very challenging and if the guideline were to be implemented, they feared losing business as 90 per cent customers have been onboarded using the minimum KYC, which is giving the telephone number.

5. The Payments Council of India, the industry body for the prepaid payments, constantly been making requests to the RBI over revoking the order and allow wallets till Rs 10,000 to operate without full KYC, but the cantral bank denied appeals saying that the ewallets are also the part of the extended banking ecosystem.

"Sufficient time has already been given to meet the prescribed guidelines. In the event PPI issuers not obtaining the KYC-related inputs within the timeline from their customers, customers will not lose their money", RBI's deputy governor BP Kanungo said on Wednesday. 

(With inputs from PTI)