KYC, or Know Your Customer, is a process that banks and financial institutions use to identify and verify the identity of their customers. This is done to prevent fraud and illegal activity involving financial transactions. The Reserve Bank of India (RBI) has made it mandatory for all banks and financial institutions to request KYC from their customers and has issued guidelines for the process. Paytm, in accordance with RBI guidelines, requires users to complete KYC in order to use its wallet services.
Paytm has divided KYC into minimum and maximum levels in order to offer users different levels of access to its wallet services. In this blog, we will discuss the minimum KYC requirements and how to complete them online with Paytm.
What is Minimum KYC?
To activate partial access to the Paytm wallet, a user must complete the minimum KYC procedure by providing their name and a unique identification number, such as an Aadhaar number, voter ID card, passport, or NREGA Job Card. This process only takes a few minutes. Upon completing the minimum KYC, a user will have access to certain benefits and limitations within the Paytm wallet.
Features of Minimum KYC:
- Wallet convenience: With Paytm’s wallet feature, users gain the flexibility to conduct secure online payments on various applications and websites with ease.
- Manageable wallet balance: Users who have completed a minimum Know Your Customer (KYC) verification can conveniently maintain a balance of up to Rs. 10,000 per month in their Paytm wallet.
- KYC restrictions: While minimum KYC verification offers certain benefits, such as manageable wallet balance, it comes with limitations. It restricts Paytm users from sending money to the receiver’s Paytm wallet or bank account.
- Mandatory KYC for both parties: Completion of KYC (Know Your Customer) is mandatory for both the sender and the receiver in a transaction. If either party has not undergone the KYC process, the transaction will not be processed.
How to Complete Minimum KYC Online?
If you have not completed the minimum KYC for your Paytm account, an exclamation mark will appear next to your name in the upper left corner flyout menu of the Paytm app. To complete your minimum KYC online, tap your name to access your profile page, where you will see a banner indicating that your wallet is inactive. From there, carefully follow the instructions provided to complete the process.
- To activate a Paytm wallet and become a minimum KYC customer, click on a banner and enter your name and unique identification number on the page that appears.
- After submitting this information, your Paytm wallet will be activated.
Does Minimum KYC Expire?
According to the Reserve Bank of India (RBI), the minimum KYC for a Paytm account will expire after 24 months unless the user completes the maximum KYC. When the minimum KYC expires, users will be unable to add or transfer money to or from their Paytm wallets. However, they can still use their remaining wallet balance to make payments to over 12 million merchants online and offline. Users can also continue to use Paytm for UPI money transfers, as well as for transactions using credit cards, net banking, and debit
How will I be Notified of the Minimum KYC Completion and When it Expires?
The Paytm app has a straightforward interface that is easy to use, which helps to create a seamless experience for users. On the Paytm home page, there is a KYC icon that shows the minimum KYC status. By tapping on the icon, users can view more information about their KYC status and expiration date.
Also Read: Everything You Need to Know About Paytm Wallet KYC!
How Much Does KYC Cost?
KYC can be completed at no cost to the user. No fees are required to be paid to Paytm Payments Bank representatives for the KYC process. However, a small fee of Rs.150 will be charged for completing KYC through home visits.
How Long Does it Take to Complete KYC Verification?
The KYC verification process typically takes 2-3 business days to complete after in-person verification. If completed at an authorized KYC centre, the process should only take a few hours.
Who is Eligible for KYC Verification?
To be eligible for Paytm KYC verification, you must be an Indian resident and at least 18 years old. Paytm may also require you to provide certain documents, such as a government-issued photo ID and proof of address, to complete the KYC process.
Is it Safe to Share my Personal Information with Paytm for the Verification Process?
Paytm ensures the security of its KYC process by using only authorized representatives who have undergone background checks and training. These representatives collect user information using a secure Paytm Payments Bank application and transmit it to Paytm’s servers. Paytm strictly follows legal and regulatory guidelines for banks and undergoes external audits to ensure compliance.
Read More: Paytm KYC: Frequently Asked Questions
Conclusion
A minimum KYC allows a user to activate the wallet and use it to some extent, such as making online and offline payments at over 12+ merchants across India. According to the RBI, the minimum KYC expires after 24 months and requires one to complete the full KYC.
What can I do with minimum KYC?
- Recharge prepaid mobile phones and pay postpaid bills.
- Pay for utilities such as electricity, water, and gas bills.
- Transfer money to other Paytm users and bank accounts.
- Shop online and pay for goods and services.
- Book tickets for movies, events, and travel. However, there are some limitations with a minimum KYC account. For example, you may have a lower transaction limit compared to a full KYC account, and you may not be able to open a savings account or invest in mutual funds through Paytm. To enjoy all the benefits of a Paytm account, you will need to complete the full KYC process.
