Reserve Bank of India extends deadline for complying with KYC norms

Monday 2 September 2019 11:34 CET | News

The Reserve Bank of India (RBI) has extended the deadline for complying with KYC norms, so mobile wallet providers have time until 29 February 2020.

Earlier in February, RBI had extended the deadline for full KYC compliance by online payment companies until 31 August. For a full KYC process, the companies will have to ensure completion of a physical verification or a biometric check of the users.

The fintech companies that relied on Aadhaar-based eKYC process for customer onboarding have had to halt KYC processes after the Supreme Court struck down Section 57 of the Aadhaar Act in 2018. Due to this, private companies lost the authority to access the Aadhaar details of the users. Since then, the players have been looking for alternatives to comply with the KYC directive.

The online payment companies have been requesting the authorities to come up with an alternative plan for completing the KYC process. Earlier it was reported that the central government and the RBI are considering the use of an ‘offline Aadhaar’ verification system which will operate on QR codes instead of biometrics.

Recently, NASSCOM asked the Reserve Bank of India to extend the deadline for full KYC to March 31, 2020. In an update to which, the industry body said that a deadline extension can be expected. The reason cited by NASSCOM for the request was that the approval and subsequent operationalising of a digital model of KYC, which would be acceptable to all companies and government authorities, would take a couple of months.

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Keywords: Reserve Bank of India, KYC, compliance, mobile wallets, Aadhaar, onboarding
Countries: World

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