The Reserve Bank of India has extended time period by six months for PPI issuers to complete the KYC process vide press release issued on 25th February, 2019.
As per the Master Direction on Issuance and Operation of Prepaid Payment Instruments (PPIs) released on 11th October 2017, PPI issuers were required to complete the Know Your Customer (KYC) process by February 28, 2019. Extension for the same has been provided on consideration of requests received from various stakeholders to increase the above timeline on account of difficulties in undertaking Aadhaar e-KYC and time necessary to put in place alternative systems for completing the KYC process.
Relevant change has been made in Para 9.1 (i) of the Master direction:
“(i) These PPIs (Semi-closed PPIs by bank and non-bank PPI Issuers upto Rs.10,000/-) shall be converted into KYC compliant semi-closed PPIs (as defined in paragraph 9.1(ii)) within a period of 18 months from the date of issue of PPI, failing which no further credit shall be allowed in such PPIs. However, the PPI holder shall be allowed to use the balance available in the PPI.”
Click here for the press release.
