Here is how KYC Rules effecting Mobile Wallets firms

Techiyogiz has reported that RBI has made KYC mandatory with Aadhaar link which in turn resulted to huge losses for Mobile Wallets firms. 

Reserve Bank of India's latest rule of
Know Your Customer is mandatory for all users of any financial instrument, and this includes mobile wallets as well. However Users are not interested to complete their KYC, and they don’t mind stop using them as well. As of companies reports 95% of transactions are down.

Some sources says that Users are really fed-up with KYC norms as linking everything with Aadhaar has testing their patience which takes loads of time to link up. And linking KYC with Mobile Wallets might leak their privacy.

Mobile wallet users who have not completed their KYC process cannot add more money into their wallets; although they can use the existing money. Which in turn resulted in a massive drop in transactions, across all wallets.

Amazon representative said " Cash loads have reduced by 95%. This will mean lower digital payment adoption in the long run, especially as we expand further into smaller cities and towns. We are losing an opportunity to engage customers who typically do not use electronic instruments."

Sunil Kulkarni, joint managing director of Oxigen Services has said " The industry average is still in the low single digits for the number of people who have done their KYC out of the total number of users of mobile wallets."