Minimum KYC Wallets for Low Value Transactions
(Judicial Quest News Service)
As apprised by the Ministry of Electronics and Information Technology (MeitY), Government of India has initiated incentive schemes such as BHIM cash-back scheme for individuals, BHIM incentive scheme for merchants, BHIM Aadhaar merchant incentive scheme for promotion and wider adoption of digital payment.
Further, MeitY vide their gazette notification No. 6(19)/2017-DPD-1 dated 27th December, 2017 has notified the reimbursement of MDR charges on Debit cards/ BHIM-UPI and BHIM Aadhaar Pay transactions of value upto Rs. 2000 for two years effective from 1st Jan, 2018, in order to promote and enable acceptance of UPI based payments at the small and micro merchants.
Also Reserve Bank of India (RBI), as the regulator of Payment and Settlement Systems in the country, sets the necessary regulatory framework, generally, through a consultative process, to ensure that different types of payment systems thrive in the country to meet the payment needs of different segments of society. The regulatory framework has also encouraged enhanced participation of non-bank entities in the payments domain. Details of the various payment systems catering to the financial needs of society are at Annex – I.
As apprised by Reserve Bank of India (RBI), they have issued ‘Master Direction on Issuance and Operation of Prepaid Payment Instruments (Master Direction on PPIs) dated October 11, 2017 (updated as on February 25, 2019). Accordingly para 9.1 (i) of this Master Direction, the PPIs is allowed for a period of 18 months by accepting minimum details of PPI holder. KYC of such PPIs need to be completed within this period, else no further loading is allowed. However, the balance is allowed to be utilised for purchase of goods and services.
This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs in a written reply to a question in Lok Sabha today.
