Why KYC is important for a Digital Wallet

As of February 28, the Reserve Bank of India made KYC compliance mandatory for users of digital wallets like PayZapp.

KYC stands for Know Your Customer and is a process by which a financial institution or a bank verifies your identity. Users of PayZapp, HDFC Bank digital wallet, can easily make themselves KYC compliant in minutes through its mobile app. You can click here to login & update your KYC for wallet.

But what are the benefits of becoming KYC compliant? Why is KYC important for a digital wallet? The most important benefit is that without KYC compliance you will not be able to use your digital wallet. However, your money remains safe in the wallet and becomes available to you after completing the KYC process.

KYC compliance offers many benefits:

  • Higher wallet limit: Once you complete your KYC, you get a higher load and spend limit of Rs 100,000 per month and Rs 500,000 per year. Thus, you can use your wallet for larger purchases.
  • Higher bank transfer limits: As a KYC-compliant customer you can transfer up to Rs 20,000 per day to a bank account and Rs 50,000 in a month to HDFC Bank and non-HDFC banks.
  • Higher P2P transfer limits: One of the biggest advantages of digital wallets is the ability to easily send money to your friends, family and others on your contact list. As a KYC customer, you can send up to Rs 100,000 a day or month. You can make up to 200 person-to-person (P2P) transactions in a day, and 1000 in a month, giving you greater flexibility.
  • Add more beneficiaries: If you are KYC compliant, you can add 3 beneficiaries a day and up to 25 in total.

digital wallet is a convenient tool to make a wide range of cashless payments for tickets, taxi rides, groceries, shopping, etc. Becoming KYC complaint helps you get more out of your mobile wallet.

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Want to know more about KYC and Digital Wallets? Read more here!

*Terms and Conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.