According to the new guidelines announced by the Reserve Bank of India (RBI), users of e-wallets such as Paytm, Freecharge and MobiKwik will have to get their KYC (Know-your-customer) done by 28th February 2018. KYC is a process in which you validate your details by submitting identity and address proofs.
The leading e-wallet companies in India are Paytm, Mobikwik, Freecharge, Ola Money, Amazon Pay Balance and Airtel Money.
Users who do not get their KYC done by the deadline:
- Will not be able to add new funds to their wallets
- Transfer the wallet money to other people’s wallets or bank accounts
But they can spend whatever balance left in the account.
Minimum KYC Wallets
Users who submit anyone official ID (Aadhar Card/PAN Card/Passport/Voter’s ID/ MNREGA Job card signed by state government officer) to the wallet provider will be classified as minimum KYC customers, which is one step above those who have done no KYC at all. Such users will have their wallet limit reduced to just Rs 10,000 and can only use it for merchant payments (no transfers to friends or plumbers). These users will also have to get their KYC done within another 12 months after which they cannot add any more money to the e-wallet.
On the other hand, those who have done KYC can
- Add up to Rs 1 lakh to their wallets
- Make merchant payments
- Transfer money to bank accounts
- Transfer money to other wallets of the same provider
- Transfer money to other wallets of a different provider, once the rules on interoperability come into effect. In other words, they can transfer from Paytm to Freecharge or from Mobikwik to Paytm or between any wallet players.
Full KYC involves the submission of Aadhar Card and PAN Card. For full KYC, you can either go to the nearest location designated by the e-wallet vendor or request a home visit by a representative of the vendor. E-wallet companies are preparing to spend big money to make this easy for you, so do take the benefit of any conveniences they offer (such as home visits).