Do away with KYC for low-value digital payments: Nasscom to RBI committee

Nasscom wants policymakers to equate low-value digital transactions with cash and do away with the need for know-your-client (KYC) requirements for such transactions.

For low-value transactions, Nasscom does not want KYC to be mandated. Any transaction, between Rs. 2,000 and Rs. 5,000, should not cause systemic risk, and the government should promote digital payments in the same level as cash is promoted, said the industry body. Right now, KYC is trigerred at every level and there is no zero KYC for digital transactions.

Clear framework needed

In its recent presentation to the Nandan Nilekani-headed RBI committee on digital payments, Nasscom also demanded a clear framework by which a fintech company could adopt e-KYC solutions without fearing regulatory questioning or intervention at a later stage.