RBI KYC deadline: More than 90% mobile wallets may stop being functional by March

Mobile wallet transactions have been witnessing a downfall. In the month of November, it has seen 14 per cent down in transaction value.

Around 347.32 million transactions worth Rs 16,108 crore took place in November whereas in October mobile wallets saw 368.45 million transactions amounting to Rs 18,786 crore.

Mobile wallets in the last three months have witnessed most of the decline after SC ruling on Aadhaar. In September, the Apex Court barred private entities to use Aadhaar for electronic know your customer (e-KYC) to sign up a new customer.

This led to about 6-time rise in customer verification cost for mobile wallets. The ruling only allowed the use of Aadhaar for govt welfare schemes.

Meanwhile, there is also big concern over their completion of customer verification. RBI had asked mobile wallets to complete the process by end of February 2019.

As per sources, most of these firms have just been able to verify very small portion of their customer base.

RBI may stop these firms, for not meeting the deadline, from being operational. Over 90 per cent of the mobile wallets may stop being operational by March, said a payments company executive to ET.

Paytm is only payment wallet that is reported to have done 70 per cent KYC of its customers.

All the mobile wallets firm are now waiting for approval of Aadhaar bill pushed by the govt in the Upper House. Once passed, the bill will allow voluntary use of the Aadhaar number for online as well as offline verification.