‘Low KYC’ norm to help mobile wallets retain their customers

In a move set to bring relief to scores of mobile wallet firms such as Paytm, PhonePe, Amazon Pay and their several million users, the Reserve Bank of India (RBI) will allow wallet service providers to continue operating their millions of non-compliant know-your- customer (KYC) accounts which earlier faced cancellation after placing certain transnational limitations.

This will be done by a mechanism giving customers an option to convert their ‘minimum KYC’ accounts to the central bank’s newly introduced ‘low KYC’ PPI accounts, said four people with direct knowledge of the matter.