The Reserve bank of India (RBI) has reportedly extended the deadline for prepaid payment instruments (PPIs) to be compliant with KYC rules.
Its new deadline has been set at 29 February 2020; however, there will be no further extensions beyond that date, according to several reports in the media. Its decision to move the deadline back was to ensure PPIs have enough time to implement a secure digital solution.
Under the new rules, PPIs and online wallet companies need to meet KYC standards which require them to verify the identity of customers to help combat financial crime.
This is the second postponement to enforcement. In February, the RBI changed the deadline for its KYC rules to August 31.
Earlier in the year, the regulator implemented four fines to banks which had failed to meet KYC, AML and account opening standards. The fines included INR 5m ($72,000) were given to Allahabad Bank, Punjab National Bank, and UCO Bank, while a penalty of just INR 2.5m ($36,000) was made to Corporation Bank.
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