The RBI has set up August 31, 2019, as a deadline for full Know Your Customer (KYC) for e-wallets.
NASSCOM has requested the apex bank to extend the deadline so that the industry gets enough time to install the digital KYC processes abiding all the regulatory precepts.
Calling XML based KYC a daunting job in such a short time, and since its failure rates are as high as 57 percent, NASSCOM has appealed to RBI to mull over video KYC which is a convenient alternative for the same.
The cost involved to process is way higher but if the apex bank extends the deadline, it will be beneficial if the regulatory body grants permission to the mobile wallet firms to use digital KYC channels.
In the meantime, the RBI is taking into account an alternate electronic channel by roping in the DigiLocker service platform online.
In May 2019, the government had allowed all the non-banking entities that are bound by Section 11A of the Prevention of Money Laundering Act, 2002 to access the Aadhaar database for e-KYC authentication.
Earlier, Paytm had also urged the apex bank to allow minimum KYC wallets to remain operational even after the banking regulator’s deadline.