MobiKwik to invest Rs400 crore for KYC process in 5 years
New Delhi: Digital payments firm MobiKwik on Wednesday announced its plan to invest Rs400 crore over a period of 5 years in completing the KYC (know your customer) process. The company will invest Rs100 crore in KYC for around 2 crore users within the next 12 months.
KYC is a process through which financial institutions verify information about customers to ensure services are not misused.
“We have set a target of achieving 2 crore full KYC wallets within the next one year and we are expecting an expenditure of around Rs50 per customer,” Bipin Preet Singh, founder of MobiKwik, said in a statement.
With full KYC, users have access to the entire financial system through a wallet, he added.
The Reserve Bank of India, in its revised set of guidelines on interoperability issued earlier this month, has sought stricter KYC requirements for prepaid payment instrument (PPI) licence holders such as MobiKwik. The full KYC wallets are allowed to have a balance limit of Rs1 lakh at any point of time.
RBI had also directed companies and banks to make know-your-customer-compliant PPIs, such as mobile wallets, interoperable within the next six months.
“Wallet is the new king of fintech and these guidelines are testimony to the growing influence of digital wallets in the Indian financial industry. RBI’s new norms further enrich PPIs and demonstrate our government’s allegiance to digital payments and commitment to the growth of the industry,” said Singh.
The company plans to do Aadhar based e-KYC and will be contracting over 7,000 field staff for this.