Skip to main content

ePayment Cos Want KYC Norms Eased for Now

By
ePayment Cos Want KYC Norms Eased for Now
Write to Reserve Bank to delay implementation of its stringent customer verification rules
The digital payments industry has written to the Reserve Bank of India to delay implementation of its stringent customer verification rules until mobile wallet providers are allowed to access the Aadhaar database for user authentication, said three people aware of the matter.“The (prepaid payments instrument) industry is in a precarious situation right now and therefore we request you to keep the (know-your-customer) regulations in abeyance till the time these concerns are resolved,” Payments Council of India (PCI) wrote in a letter to RBI, which ET has reviewed.
The industry body said payment companies would be committed to the KYC guidelines once they receive global authentication agency (AUA) licences that will enable them to authenticate customers using Aadhaar.RBI did not respond to ET’s queries on if and how it plans to resolve the industry’s demands.
MobiKwik, EbixCash and Oxigen Services, which are registered as authentication agencies, have been dropped into a ‘Local AUA’ list that prohibits them from storing data, as per a notification of the Unique Identification Authority of India, which issues digital Aadhaar numbers to Indian residents. The move also means payment companies can only ask users for their virtual Aadhaar numbers for authentication.
“The PPI industry is in a unique situation where on one hand issuers have been mandated to perform Aadhaar-based KYC and on the other they are being denied the requisite licence to do so,” PCI said in its letter to RBI.It has also sought for UIDAI to expedite the AUA licensing process for Amazon Pay, PhonePe, Balance Hero, Sodexo, PayPoint and ZipCash.
RBI’s full KYC rules for mobile wallet came into effect on March1.
“Even cooperative banks and regional rural banks have been included in the list of entities that have been given access and permission to store data… there are a few cooperative banks with a single branch in a single district while we have pan-India presence, still this discrepancy,” said a senior executive with a payment company that holds an AUA licence. UIDAI, in a recent notification, said companies that did not have ‘enough justification’ to access the Aadhaar details of their users would be put in a ‘Local AUA’ list. Further, industry insiders said that in the wake of the Supreme Court’s observations on privacy concerns around Aadhaar, UIDAI has been delaying granting licences for fresh applicants.
The Economic Times, New Delhi, 19th June 2018

Comments

Post a Comment

Popular posts from this blog

Data storage norm splits digital payments industry

By
Data storage norm splits digital payments industry  India’s nascent digital payment industry could be thrown into disarray due to the demand by the Reserve Bank of India (RBI) that all user data be stored within the country, fears an industry grouping, which has termed the decision as “heavy-handed”, even as others, including the country’s largest digital payment provider Paytm, have hailed the move.  In a bid to narrow the growing schism, the industry is planning to send a formal representation to the regulator highlighting its concerns, a top official told ET.  “We are trying to build a consensus on the issue," said the person adding that the representation to the central bank will be ready this week.  RBI on April 6, mandated all payment companies—global and local—to set up data storage facilities within India by October. The stringent six-month deadline has attracted the ire of several sections of the industry that fear it will lead to a disruption of wel...
18 comments
Read more

Offer’s for all of you

By
Great Bumper Dhamaka Offer’s for all of you... It's Time to see your Business Online, WebeCreator Offer Website Designing with domain & Email @ nominal charges. For a year For More information visit us http://goo.gl/KlpppF call on 9890151261/9773197533  drop a mail to sales@webecreator.com
Post a Comment
Read more

Sebi to finalise options in commodities today

By
The Commodity Derivatives Advisory Committee of the Securities and Exchange Board of India ( Sebi) will meet on Friday with senior officials of the latter, to give a final shape to the rules on options trading in commodity futures, beside revising the warehousing norms to ensure good delivery on settlement. The decision taken, after discussing with the advisory committee, will be placed before the regulator’s board, to finalise the regulations. According to knowledgeable sources, three commodities in each segment, agricultural and non- agricultural, have been proposed for introducing options. It appears commodities from the soya and guar segments are preferred in the former. From the non- agri segment, it is likely that gold, silver and crude oil will be finalised. All these These have better liquidity and both the National Commodity and Derivatives Exchange and the Multi Commodity Exchange, respectively, will be able to introduce the options. In the equity segments, options ar...
17 comments
Read more