Digital Payments Sector Seeks More Time for Merchant Verification
What Happened
Payment aggregators have asked the Reserve Bank of India (RBI) to extend the September 15 deadline for completing the re-KYC of existing merchants. Companies are struggling to verify a large backlog of merchants, particularly small offline businesses using QR codes and small online sellers, raising concerns about potential disruptions to digital payments if the deadline remains unchanged.
Key Takeaways
Industry estimates suggest 30-35% of small offline merchants and around 1 million online businesses could miss the deadline. Payment firms believe RBI may consider an extension to avoid disruptions and support broader financial inclusion goals.