The RBI has informed people that their money will be completely safe if stored in mobile wallets. Initially, the Reserve Bank was a little weary about mobile wallet companies not complying with the Government made KYC guidelines. However, they now stated that the money stored with the wallets would be safe but they are still working on restrictions toward strengthening the system holding this money.
Going through the complete KYC details requires customers to provide all their information, including their PPI account and Aadhar card details. They would also have to provide some address proof. If they do not want to provide this information, they can continue making purchases, or pay their bills using the money they already have in their wallets.
There are currently 55 non-banking PPIs currently present and there are 50 different wallets that are being promoted by Indian banks. The initial deadline for PPI issuers to comply with the KYC requirements was 31st December 2017. Some issuers requested that the date be extended and it was then moved up to 28th February. In a speech given by the Deputy Governor of the RBI, he said that the extended date was more than enough for everyone’s compliance. This hinted that the date is not going to be extended further. However, PPIs are afraid to implement stricter rules since it might mean business loss since users are always looking for the least KYC information to be provided.
Currently signing up for a mobile wallet is quite simple, all users have to do is verify their mobile number and they are good to go.