MobiKwik to invest Rs 400 cr for KYC compliance over 5 years

Mobile wallet, MobiKwik announced the company's plans to invest Rs. 400 crores over a period of five years in KYC.

The company will be investing Rs.100 crores in doing KYC for 2 crore users within the next 12 months.

MobiKwik impacts 260 million lives across the country through strategic tie-ups and partnership with blue-chip players such as Bajaj Finserv, BSNL and IndusInd Bank.

This partnership has led to a substantial addition to the user base apart from the 65 million core MobiKwik wallet users. These partnerships also bring in over 20 crore KYC users to the MobiKwik network.

"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 Rs. 50 per customer," said founder, Mobikwik, Bipin Preet Singh.

The Reserve Bank of India (RBI) in its revised set of guidelines on interoperability issued earlier this month has sought stricter KYC requirements for prepaid payment instrument (PPI) licence holders.

The full KYC wallets are allowed to have a balance limit of Rs 1 lakh at any point of time.

"Wallet is the new king of Fintech and these guidelines are a 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," added Singh.

He said, full KYC user having access to the entire financial system through a wallet, the industry is looking at a promising future. Collaboration and competition are also going to drive the digital payments industry into its next phase.

KYC is a step towards obtaining information about customers and verifying their identities to ensure safest and secure transactions.

The company also plans to do Aadhar based e-KYC and will be contracting over 7,000 field staff for the same.