High KYC cost a deterrent to business: Wriju Ray in ET
In an Economic Times article dated 11 July 2019, Wriju Ray - co-founder and CBO at IDfy - has has pointed out how the lack of applicability of the Aadhaar amendment is negatively impacting mobile wallet businesses.
“The cost for manual KYC for non-banks is anywhere between Rs 200 and Rs 250 per KYC. For players with huge customer volumes, these costs can be deterrent to their business and eat up on revenues", Wriju says.
The latest Aadhaar amendment allows banks to open accounts using Aadhaar as a non-binding document for customer verification using UIDAI data repository. This, however, is not extended for fintechs and NBFCs including mobile wallets.
With the August 31 RBI deadline for completing KYC of all customers fast approaching, these payment players are seeking further extension to comply with the mandate.
These companies fear that the tight deadline and prohibitive costs of manual KYC will lead to significant loss of business, especially high volume and low value transaction customers who comprise a significant part of their customer base.
"This will severely impact GoI’s vision for a less cash society", a spokesperson of PayTM is quoted saying in the ET article.
IDfy provides Digital KYC solutions for Fintechs, NBFCs, and Mobile Wallet companies that enable complete regulatory compliance and risk-free customer onboarding.
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