Policy Update
STRICT KYC NORMS INTRODUCED TO KEEP eWALLETS SAFE: RBI
An introduction of more strict Know Your Customer
(KYC) norms for wallet users has been made by the
Reserve Bank of India (RBI), in a set of fresh guidelines
along with allowing interoperability and bringing in fraud
detection norms to prevent fake wallet transactions - steps
which will change the scope of operations for mobile
wallets.
Customers can now move money between wallets of
different companies and banks seamlessly through Unified
Payments Interface (UPI) unless they complete full KYC
formalities, like they do for bank accounts.
Mobile wallets, which have been consistent to a minimum
KYC format (like a simple verification of mobile number)
will have to convert to full KYC wallet within a year of
opening it.
All existing wallet users have to convert to the full KYC
format by this year end.
The RBI said minimum KYC wallets cannot have a balance
of more than `10,000 and this can be allowed only for
purchase of goods and services and not for remittances to
other wallets or bank accounts.
Full KYC wallets will have a limit of `1 lakh and all facilities
for fund transfer will be allowed.
The RBI guidelines show that only serious players with deep
pockets will be able to enter the payments space. “The fact
that 12 months has been given for conversion of wallets
into full KYC ones shows that they have enough time to
convince customers to complete KYC requirements,“ said
Naveen Surya, chairman of Payments Council of India, the
industry body for payments players. “I believe, by then, the
KYC for mobile numbers can be completed and Aadhaar
rails might improve, making it easier to get KYC formalities
done.”
RBI has also increased the networth requirements for players
in this space. “The higher positive networth requirement for
wallets is justified because RBI is recognizing wallets as a
serious financial services space, “said Vijay Shekhar Sharma,
founder of Paytm.
“If money will be moved across wallets of different
companies, they will need that higher capital to be able to
support such transactions.”
RBI has also increased the limit on the amount that can be
transferred from wallets to `1 lakh. It also allowed inward
international remittance for wallets, with an upper limit of
`50,000.
TRAI INVITES COMMENTS ON PATENT LAW AND STANDARD
ESSENTIAL PATENTS
stakeholders are invited to submit their comments by
October 16, 2017. The paper discusses the background
of the Telecommunication industry and existing
concerns of the local telecom manufacturing and
all government initiatives to boost local telecom
manufacturing.
Comments have been invited on whether the existing
patent laws sufficiently address the concerns of local
manufacturers and measures for supporting local telecom
manufacturing industry.
A Consultation paper has been issued on promoting
local telecom equipment manufacturing in India by
Telecom Regulatory Authority of India (TRAI), and all
Suggestions for dispute resolution mechanism for
determination of Royalty distribution on FRAND are also
invited.
The consultation paper is available on the TRAI site (at
publications/consultation papers).
www .