It’s 1 March and a lot of people are complaining about their inability to use or transfer money from wallets like Paytm and Mobikwik. Why is that?
According to an RBI notification, all prepaid wallet users are supposed to complete their ‘Know Your Customer (KYC)’ requirements by linking their Aadhaar or other documents, or else they won’t be able to send money via the wallet to others or even transfer their own money back into their bank account.
So, what’s the way around this, which features cannot be used without the KYC and, how do you get this done? Follow these steps to unlock basic prepaid wallet features.
No KYC? Here’s How it Works
Verifying accounts is going to be a regular exercise for Indian citizens in the coming months, especially if the Supreme Court decides to appeal in favour of linking mobile number or bank account with Aadhaar.
And similar steps are to be followed for KYCing with prepaid wallets like Paytm as well. Considering the fact that Paytm is the leading wallet in the country, we’re guiding you through the steps to verify with it.
When you open your Paytm app and head over to Add Money, you’ll see this message pop-up headlined ‘Important’. This simply states that an attempt to add money to Paytm wallet will transfer the money to a non-refundable Paytm Voucher.
This voucher can be used for services like Uber, Zomato and for recharging. You cannot send the voucher to other Paytm users.
This limitation ensures that all Paytm users have to update their accounts, verify it via documents like Aadhaar, Driving License and Passport among others (as seen in the above picture).
As the visual also highlights, once you’re done with the KYC process, you’ll be able to access Paytm Payment bank, seamlessly transfer funds and get some cashback benefits too.
But strange as it may be, Paytm, after getting your identification done, has a rather complex verification process in place.
As you can see in the image above, users will either have to head over to a nearby KYC point (listed by the wallet provider), or they can call over an executive for doorstep verification.
It’s baffling that even with measures like e-KYC, Paytm still relies on manual work and has set up physical spaces to get its end of the verification done. Clearly they could have designed this system in a more convenient fashion.
It must also be noted that mobile payment services like Google’s Tez and WhatsApp Payment are not included in this list because of its affiliation with Unified Payment Interface (UPI), which is directly linked to your verified bank account from day one.
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