KYC & Digital Wallets: Everything you wanted to know (2024)

FAQs

What are the requirements for KYC in wallet? ›

The KYC process can include digital identity verification, biometric identification and ID document verification. KYC procedures are essential to ensuring transactional security between crypto exchanges and their clients by assessing and monitoring risk and potential illegal activity.

Full KYC involves submission of a valid Proof of Identity & Proof of Address with in-person verification. On successful completion, you will be offered FreeCharge Wallet with enhanced limits & other features.

Minimum KYC is required for using Wallet.

Without minimum KYC it is still possible for you to use Paytm for UPI money transfer and make purchases using credit/debit cards and net-banking.

Know your customer requirements. In the United States, the Financial Industry Regulatory Authority (FINRA) Rule 2090 states that financial institutions must use reasonable diligence to identify and retain the identity of every customer and every person acting on behalf of those customers.

KYC requirements for banks in particular mandate that KYC protocols are followed for every customer who wants to open or has opened a bank account. These requirements verify the identity of customers to ensure that they are who they say they are.

Digital KYC is an online method of verifying people's identity, enabling them to access any financial instrument in the market. Usually, during a digital KYC, the customers share their live photo or video and officially valid documents with the company's representative.

Though digital wallets and mobile wallets are very similar, they aren't the same. Digital wallets are typically meant for online transactions, whereas mobile wallets are tied to a smartphone or wearable device. Both connect to bank accounts and credit cards for purchasing on the go.

What are the basics of digital wallets? ›

Digital wallets allow you to pay when you're shopping using your device so that you don't need to carry your cards around. You enter and store your credit card, debit card, or bank account information and can then use your device to pay for purchases.

What's UPI Lite? UPI Lite is an online wallet where you can pay without the use of a UPI PIN on the Google Pay app. It doesn't require an e-KYC. You can pay up to ₹500 INR per transaction and have multiple transactions up to a total of ₹4,000 INR in a day.

KYC is required to make investments, not for withdrawing. Though you don't need to get KYC done at the time of withdrawal, it's always a good practice to update your MF folios with your KYC. This is to ensure that you can make fresh investments into any of your existing MF folios.

Exodus is a versatile crypto wallet that doubles as an exchange, offering management, transactions, and swaps for over 300 cryptocurrencies without KYC requirements. This feature makes it an attractive option for users prioritizing privacy in peer-to-peer transactions.

KYC process includes ID card verification, face verification, document verification such as utility bills as proof of address, and biometric verification. Banks must comply with KYC regulations and anti-money laundering regulations to limit fraud. KYC compliance responsibility rests with the banks.

KYC documents are formal documents that verify the name and address of a customer. Some customers may also be required to provide proof of income if applying for certain products or services. In general, a customer will need to provide separate proof of identity (POI) and proof of address (POA) documents.

KYC documents include an Aadhaar, Voter ID, passport, etc., which acts as proof of identity, and an Aadhaar card, Voter ID, utility bills, etc., that can act as an address proof along with a PAN card and a recent photo.