India’s mobile wallet companies feel the pinch of full know-your-customer guidelines
The Payments Council of India, a lobby group for mobile wallet companies, has asked the Reserve Bank of India to withdraw full know-your-customer requirements for them, claiming they would otherwise lose customers.
“The revised guidelines of full KYC for PPIs (prepaid payments industry) are throwing us in a very challenging situation since 90% of the volumes that we were generating was mainly from the minimum KYC PPIs. If implemented, those customers will stop using our services,” said Sunil Kulkarni, joint managing director at Oxigen Services and co-chairman of the PPI committee under PCI.
The industry put the number of customers with full KYC done in the ‘low single digits’ with the deadline less than two weeks away. Top executives said if the central bank did not revise its guidelines, the domestic remittance business could revert to banks or unofficial channels and the ecommerce business would go back to cash transactions.
Photo courtesy of Ismael Ferdous.