RBI extends the KYC compliance norms by six months for e-wallet companies
As a relief to e-wallet companies, the RBI extended the six months deadline for the compliance of KYC norms, for the prepaid payment instrument issuers. February 28 was the earlier deadline for these companies. According to the RBI statement, many stakeholders requested to increase the timeline on account of difficulties in undertaking Aadhaar as e-KYC and the time necessary to put alternative systems for completing the KYC process, so it has been decided to extend the time for 6 months for the prepaid payment instrument (PPI) issuers for the completion of the KYC process.
The PPIs are those instrument which can facilitate the purchase of goods and services, it also includes financial services and the remittance facilities. The e-companies were caught in a bind over this deadline as companies were concerned that they wouldn’t be able to meet the central bank deadline to complete the KYC procedure of all the customers till February end.