Reserve Bank of India (RBI) revised Know your customer guidelines (KYC) may close the digital wallets business in India.Earlier in the month of October, 2017, RBI had given the deadline of 28th Feb 2018 for completion of Full KYC in all the Digital Wallet accounts maintained by eWallet companies.
In the revised guideline, RBI had clearly issued the warning stating if wallet providers not complying with the requirements within 12 months would face severe operational restrictions. This was for prepaid instrument as well as semi-closed wallets in which restriction are there for Rs 10,000 monthly loading for customer also.
Till date the data submitted by all the wallet companies in India has shown the percentage of Full KYC completed account on ewallets below 10% as compared to total number of accounts opened.
Currently more than 12000 crore of transaction are being handled by all the walletcompanies together in Digital space. If RBI stricts on decision and doesn’t extend the deadlines, almost all the wallets companies like PayTM, Mobikwik, Freecharge, SBI buddy, ICICI pockets etc will be forced to close the 90% of their existing accounts of customer.