RBI Assures Wallet Money Can Be Used Without KYC; But Refuses To Extend Deadline!

RBI has come out and assured all that their wallet money is safe, and can be used even without KYC.


Digital Wallet Money Can Be Used Without KYC

Last week, we had reported about a scary situation: In case any mobile wallet like Paytm user hasn’t completed the KYC or Know Your Customer process, then the money remaining in the wallet shall be left immobilized.

This was as per the strict KYC rules formulated by RBI last year.

This caused panic all around, as wallet firms scrambled to convince all users to complete KYC.

However, considering the rising confusion, which acts against Digital India vision, RBI has come out and assured all that their wallet money is safe, and can be used even without KYC.

Having said that, RBI has refused to extend the deadline for KYC.

And, some major operations won’t be possible. We will soon find out which are those operations.

Meanwhile, another scammer has been caught, who syphoned off money from bank account holders, into wallets, using fake calls.

RBI: Your Money Is Safe In Wallets!

Clearing all doubts, RBI has clarified that even if KYC of wallet users hasn’t been done before February 28th, their money is safe, and can be used for purchases.

Deputy RBI Governor BP Kanungo said,

“Sufficient time has already been given to meet the prescribed guidelines. In the event PPI issuers not obtaining the KYC-related inputs within the timeline from their customers, customers will not lose their money,”

Having said that, RBI has refused to extend the deadline for KYC of all wallet users. Hence, February 28th is still the last date for all KYC related activities.

As per RBI, users who haven’t yet completed their KYC can use the wallet money, and pay for services or buy things online.

However, starting March 1st, they won’t be able to add money or withdraw any money from their wallet. These two major operations form the backbone of any wallet.

Kanungo said, “The guidelines are designed to strengthen safety and security of transactions and customer protection.”

There are 55 non-banking PPIs (prepaid payment instruments) operational now, apart from 50 wallets promoted by banks.

Aadhaar Card or any other Government Id can be used to complete the KYC process.

Man Held For Syphoning Off Money Into Wallets

Meanwhile, another scammer has been nabbed, who misused the features of wallets, and siphoned off money from bank customers.

Gaurav Sharma was arrested after a raid conducted at Sadarpur Colony, Sector-45. As per officials, 55 mobile phone SIM cards, 22 empty packets of mobile SIM cards, five mobile phones, two WiFi routers, eight credit/debit cards, six passbooks and eleven chequebooks were found at his location.

Chinmoy Biswal, DCP (South Delhi) said,

“Details collected from concerned bank accounts so far has revealed the credit entries of suspected transaction aggregating more than Rs 75 lakhs. More information are being collected from various agencies and banks,”

He used to make fake calls to bank customers, asking their OTP which they must had received at the same time. Once OTP was shared, money was withdrawn from their bank account, and added into wallet.

Once again, we alert all: Never share OTP with anyone on the call. Especially when it comes to wallets and bank accounts.

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