Indian digital wallet platforms are facing a big issue. The reason is not the entrance of any new competitor. According to the guidelines of RBI, the last date of completing the Know Your Customer (KYC) details for using digital wallets is coming near. Users who have not provided the details will no longer be able to use these wallets after 28th February.
According to the reports, around 90 percent of users have not provided their KYC details and there is a big chance that most of the accounts will become inactive due to this. So, what will happen to the money that is present in these wallets? Users will be given a single chance to transfer their money to bank accounts without any charges. No offline usage or top-ups will be available after this.
The entry of big names like WhatsApp in this market has already threatened the wallet companies and the KYC operation will make a huge impact on the business of these firms. After demonetization, wallet companies have become very popular in buying things both online and offline. The easy process of making an account on these apps is the reason why a big section of users tried these wallets.
RBI is looking to make these wallets more safe and secure and for doing this some new decisions will be taken to make the process of opening accounts on these apps more meaningful. There is a big chance that users will start using banks as a complete KYC process is similar to opening account in banks.
Although wallet companies are trying to extend this final date, this is not the final solution and it will be very interesting to see what impact of RBI’s decision.
What do you think about this? Do let us know in comments.
