RBI extends KYC deadline for e-wallets by 6 months

BENGALURU: In a major relief to consumers as well as mobile wallet companies, the RBI has extended the deadline for full know-your-customer (KYC) compliance by six months. The deadline was supposed to end on February 28. The extension comes after intense lobbying by mobile wallet players and domestic internet groups with the central bank over the past few months.
As much as 70-80% of the user base of most e-wallet companies was yet to comply with full KYC norms. Such users would have been invalid starting next month, according to top industry executives. After the RBI mandated full KYC via its circular in 2017, mobile wallets were largely relying on Aadhaar for e-KYC. The Supreme Court ruling that barred private entities from using Aadhaar made it tougher for companies to do KYC and also increased costs. While an e-KYC costs on average about Rs 15 per person, the physical route required Rs 80-100.