The RBI has set a deadline of February 28th to complete the full KYC process for mobile wallets. What does this mean? From March 1st 2018, you will not be able to enjoy all the facilities provided by your Paytm, MobiKwik and other mobile wallets.
A lot of questions must be going through your mind, if you have yet to complete KYC for mobile wallet. If you don't do KYC on your mobile wallet, you can enjoy only half the services like recharging your mobile. But, you will not be able to send money to friends and family. If you want to send money to friends and family from your mobile wallet, you have to complete the KYC.
Want to know more on investment planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.
A mobile wallet is a virtual money wallet, where you open an account with a mobile wallet service provider and preload a certain amount of money. You can pay for movie tickets, utility bills like water and electricity and even transfer money using the mobile wallet.
1. Steps to complete KYC for Mobile Wallets
STEP 1: You must open your Paytm, MobiKwik or other Mobile Wallet App and enter your registered mobile number.
STEP 2: You will get an OTP on your registered mobile number.
STEP 3: You then enter the OTP and also enter Aadhaar details.
To complete the full KYC, you must submit a photograph along with an officially valid document like PAN, Aadhaar Card, Passport or Driving License.
SEE ALSO: Know Mobile Wallet
While the RBI move helps check duplication of mobile wallets and fraud, the mobile wallet industry is worried. Mobile wallet Companies have spent Billions of Dollars to acquire 50 Crore customers and there are chances, they could lose more than 40% of customers.
Mobile wallet firms like Paytm, Amazon Pay, PhonePe and MobiKwik could lose a lot of customers as many customers are not updating KYC.
SEE ALSO: Aadhaar Card Check Online
4. So why are Mobile Wallet Companies worried?
Mobile Wallets fear 80% of their business is at risk, which is worth more than Rs 12,000 Crores, because of new RBI KYC rules. Mobile Wallets Companies are frightened, customers may run back to cash, as they find cash convenient and there is no documentation required.
Mobile wallet are jittery and frightened, as most of their business comes from customers who have provided minimum KYC. A senior executive at a top Mobile Wallet firm has stated that, not even 50% of Customers KYC verification has been completed.
Mobile Wallet firms say that Full KYC is not important for mobile wallets, as they are an alternative to cash. Mobile Wallets is all about commerce and not banking. So why full KYC for customers? Be Wise, Get Rich.
Mr. C S Sudheer is the founder and CEO of IndianMoney.com – India’s largest Financial Education Company. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
Subscribe to our Youtube Channel
Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.