India’s central bank sooths e-wallet customers’ cancellation fears with new low KYC accounts

From: RegTech Analyst

Millions of digital wallet users can keep their accounts after the Reserve Bank of India’s (RBI) new move.

Roughly 200 million mobile wallets in the country faced the risks of being cancelled after the Supreme Court ruled in 2018 that all know your customer (KYC) authentications through Aadhaar, the Indian identification authority, were invalid. The verdict stated that those accounts verified through the service would be retrospectively considered invalid.

The RBI decision means that the affected digital wallets can be converted into low KYC PPI accounts, according to four sources speaking with the Economic Times.

The news comes after many payment companies expressed concerns with both the regulators and the government that without relaxations on guidelines of these contentious accounts, their business models would take a major hit.

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