More stringent norms are brought in by the Central Bank, to stop fake wallet transactions. This is expected to bring in a new life for mobile wallet operators which are expected to be fraud free. It would now be possible for the customers to make uninterrupted transfer of money between wallets of various companies and also banks through Unified Payments Interface (UPI) which of-course is subjected to compliance of entire KYC guidelines, as is done for the bank accounts.
As at present, mobile wallets comply with minimum KYC formalities viz Simple Verification of mobile number. However it is now proposed that the present mobile wallet users should shift to the fully KYC compliance, within a period of 12 months of opening the account. The existing wallet users should ensure to convert themselves to the new KYC formalities before the current year end. Further it is felt that Completion of KYC for mobile numbers and Aadhar link process would make it easier to get KYC formalities done comfortably.
Also RBI conditions add that
- The minimum KYC wallets cannot have a balance of more than Rs. 10,000
- Even this Rs. 10,000 of the minimum KYC wallet users can be permitted only for purchasing goods and services and not for remitting to other wallets or bank accounts.
- Full KYC wallets will have a limit of Rs. 1 lac and will be provided all facilities for fund transfers.
- 12 months are given for conversion of wallets in to full KYC is that there would be sufficient time, for the service providers to convince the customers on KYC compliance.
- On the increasing of the net worth requirements of the service providers, RBI states that for a PPI licence, companies should have a positive net worth of Rs. 5 crore at the time of applying, against Rs.2 crores which was the previous amount. Also, this should be increased to Rs. 15 crore within the third financial year of receiving RBI’s approval.
- RBI further adds that the higher positive net worth requirements for wallets is justified because wallets are considered to be a VULNERABLE FINANCIAL SERVICE PROVIDING AREA.