RBI had directed Prepaid Payment Instrument (PPI) issuers to ensure all accounts were KYC compliant “on or before February 28, 2019. Amazon Pay has also started doorstep know-your-customer (KYC) services for its mobile wallet users. The move comes after the Supreme Court’s September 26, 2018 verdict on Aadhaar which barred the use of Aadhaar biometrics data by private companies such as banks. In the case of a customer consenting to use Aadhaar card, it can only be used as an ID or Address proof like other documents but not for biometric verification or e-KYC.
The Reserve Bank of India (RBI) has absolved customers using prepaid payment instruments (PPIs) of liabilities arising out of a fraud if the incident is reported within three days. If the fraud is reported within four to seven days, the customer liability will be the transaction value or Rs 10,000 per transaction,whichever is lower. In cases where the loss is due to negligence by a customer, he/she will bear the entire loss until he/she reports the unauthorised transaction to the PPIs issuer. Any loss occurring after the reporting of the unauthorised transaction shall be borne by the PPIs issuer.