Stricter norms for ewallet and gift card companies likely soon. What it means for you?
the Reserve Bank of India issued the draft master directions on issuance and operation of prepaid payment instruments, the underlying theme was security and customer protection. If these draft guidelines turn into reality, here is what it would mean for your e-wallet and gift cards:
PAN OR AADHAAR MAY BECOME MANDATORY
So far, if you opened a new e-wallet, you didn’t have to provide any identity card details. You could just provide minimum details such as mobile number, email ID and create a password to load money and transact. As part of the knowyour-customer (KYC) process, e-wallet companies usually sent out a one-time password to verify mobile number and once verified consumers could start using the service. In the draft norms, RBI wants you to provide a unique identification number of any of the ‘officially valid documents’.
“RBI wants to avoid misuse of e-wallets for money laundering or fraud. The unique identification number could be in the form of PAN or Aadhaar number,” said Jitendra Gupta, MD, PayU India.
FULL KYC FOR ALL E-WALLETS
The RBI also wants e-wallet accounts to be converted into full KYC accounts within two months of the opening of an e-wallet account. If the full KYC is not done, no further credit will be allowed. If you have any balance left in the wallet, you will be allowed to use the balance. As of now full KYC is not mandatory up to a certain amount. The RBI has asked e-wallet companies to convert all existing minimum detail PPIs into full KYC ones by June 30.
NO PAPER VOUCHERS
Some companies such as Sodexo now offer paper vouchers. In the draft guidelines, the RBI wants to do away with paper vouchers. Instead companies are allowed to issue instruments only in electronic form such as smart cards, magnetic stripe cards, Internet wallets, and mobile wallets. “Entities presently issuing meal vouchers under B2B arrangements in paper voucher form shall commence issuance of such PPIs in electronic form, including cards, at the earliest, but not later than December 31,” the RBI said in its circular. Prepaid meal instruments in paper voucher form will not be accepted beyond December 31.
ZERO BALANCE ACCOUNT
In case you have zero balance in your e-wallet for one year, it will be closed automatically by your e-wallet service provider.
MORE AUTHENTICATION
The RBI has suggested prepaid payment issuers to provide additional factor of authentication for validating transactions. “The big question is whether wallets are vulnerable. I think security is important even at the expense of convenience,” said Abhijit Bose, co-founder and CEO, Ezetap Mobile Solutions Pvt Ltd.
CUSTOMER PROTECTION
E-wallet and gift card companies have been asked to appoint nodal officers to handle customer complaints. In case of any complaint, an action has to be taken within 48 hours and resolved within 30 days from the date of receipt of such complaint or grievance.