BENGALURU: E-commerce major Amazon is asking the Reserve Bank of India (RBI) to do away with the mandatory ‘full KYC’ (referring to ‘know your customer’ norms) for low-value transactions. Amazon has said compliance for small ticket transactions through its e-wallet Amazon Pay can be cumbersome for users as well as for the company. People aware of their plans said Amazon is set to make a representation with the regulator in a hearing slated at the end this month.
Sriraman Jagannathan, VP-Amazon India, is also the head of the Prepaid Payment Instruments (PPI) committee under Payments Council of India (PCI). Last year, for e-wallets and prepaid instruments, the RBI had granted an additional two months (till end of February) to complete the KYC process.
PCI, which represents a host of players in this space, is also making a similar pitch to the RBI, including a request for removal of mandatory timeline to convert a minimum KYC account to a ‘full KYC’ account.
A spokesperson for Amazon India said in an emailed response, “We request the regulator to reinstate the proportional KYC framework. Over 90% of PPI transactions are of a small value (less than Rs 10,000). Asking customers to submit an officially valid document to be permitted to make such transactions adds friction and will send the people back to cash. The requirement for customers to complete their KYC within 12 months regardless of their level of usage will further result in significant drop-offs. Customers should be asked for KYC based on risk or value of transactions, not by time.”
Speaking to TOI, Sunil Kulkarni, co-chairman of the PPI committee of PCI, said the association will request the RBI to do away with any timeline for converting a minimum KYC account into a full KYC account.
Sriraman Jagannathan, VP-Amazon India, is also the head of the Prepaid Payment Instruments (PPI) committee under Payments Council of India (PCI). Last year, for e-wallets and prepaid instruments, the RBI had granted an additional two months (till end of February) to complete the KYC process.
PCI, which represents a host of players in this space, is also making a similar pitch to the RBI, including a request for removal of mandatory timeline to convert a minimum KYC account to a ‘full KYC’ account.
A spokesperson for Amazon India said in an emailed response, “We request the regulator to reinstate the proportional KYC framework. Over 90% of PPI transactions are of a small value (less than Rs 10,000). Asking customers to submit an officially valid document to be permitted to make such transactions adds friction and will send the people back to cash. The requirement for customers to complete their KYC within 12 months regardless of their level of usage will further result in significant drop-offs. Customers should be asked for KYC based on risk or value of transactions, not by time.”
Speaking to TOI, Sunil Kulkarni, co-chairman of the PPI committee of PCI, said the association will request the RBI to do away with any timeline for converting a minimum KYC account into a full KYC account.
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