RBI Introduces ‘Low KYC’ To Help Fintech Companies Retain Customers
In an attempt to ease out regulations for fintech companies, the Reserve Bank of India (RBI), on Wednesday (February 5), has agreed to allow non-compliant know-your-customer (KYC) accounts to continue making payments through mobile wallets. RBI is expected to permit transactions by giving customers the option to convert their ‘minimum KYC’ accounts to the central bank’s newly introduced ‘low KYC’ PPI (Paid Payments Instruments) accounts. Paytm CEO Vijay Shekhar Sharma told ET that the customer’s consent will be taken before the ‘low KYC’ conversion of the accounts happen. RBI Introduces Video-Based KYCOver the years, fintech companies have been writing to RBI to find alternate solutions to smoothen the KYC process, and cut the cost incurred from physical onboarding and verification of customers. Most importantly, this will eliminate physical onboarding and verification process of customers.