Users can still load cash into their Paytm wallet even if they have not finished their KYC (Know Your Consumer) official procedure. Paytm seems to be operating around the newest directive of the RBI for obligatory KYC, where consumers can load cash into their wallets on the platform via gift vouchers.
But these gift vouchers will not allow you send it back to your bank accounts or send cast to others. They also arrive with an ending date of 1 Year. This is a standard practice amongst companies rolling such vouchers.
As posted by the local media, digital wallets or PPIs (prepaid payment instruments) are reeling below severe stress with fresh rules kicking in. Paytm has been branching out into other businesses from its fundamental e-wallet business. Paytm’s decision to roll out gift vouchers arrives as a plan to minimize the harm to its e-wallet non-KYC consumer base.
Paytm has been attempting to shift consumers to its channel from a pure-play e-wallet on the UPI, or Unified Payments Interface platform. The early affect of the RBI’s rules has been felt by firms. Amazon India has already witnessed a 30% fall in its e-wallet consumer base. When made a contact, a spokesperson of Paytm refused to answer on the issue. As per an executive of the industry who did not wish to be identified, gift vouchers have been working in the grey market.
On a similar note, Paytm stated that it aims to apply for a license to work as a general and life insurer, sources well known with the matter claimed to the media in an interview. Paytm, which has arranged 2 different bodies named Paytm General Insurance and Paytm Life Insurance, will register with IRDAI. The decision of Paytm to aggressively pursue the in general user finance segment is planned at pacing development in its non-payments commerce.