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NRB to freeze digital wallet accounts with unverified KYC

NRB has made it into the law that it will freeze digital wallet accounts with unverified KYC (Know Your Customer) forms. To promote awareness and reinforce mobile wallets’ reach among the people, top digital wallets have partnered strategically.

Khalti, eSewa, IME Pay, and PrabhuPay have come forward to spread the importance of KYC via a common “KYC Jaruri Chha” campaign which aims at making users aware of its importance and also help the country in its digital transformation.

It’s expected that the campaign will play a vital role in propping up digital payment in Nepal by making seamless financial services more accessible to the people.

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NRB will freeze KYC-unverified digital wallets from Shrawan 1

Nepal’s federal and regulatory bank Nepal Rastra Bank (NRB) has made preparations and will freeze KYC-unverified digital wallet accounts from the start of the fiscal year FY 2081/82. We assume that’s happening right from Shrawan 01.

Image for representation | Credit: eSewa

And only after the KYC verification, those frozen accounts will be restored to full function again. So, it’s become just more important that people understand why KYC is so significant among digital wallet users. KYC helps authenticate your identity but it is also helpful in minimizing scams, money laundering, outlawed crypto mining, and online betting among others.

Also read: Cyber Bureau offers 5 tips for cybersecurity

PSPs emphasize the importance of KYC

Misuse of digital wallets is rampant these days but KYC authentication could greatly help reduce it. The digital wallet companies have voiced the significance of this “KYC Jaruri Chha” campaign.

Jagdish Khadka, Chief Executive Officer (CEO) of Nepal’s pioneering payment service company eSewa Limited, says, “It is an important step to provide more convenience to the users by simplifying digital payment services. KYC authentication is crucial to protect users from digital scams and also to prevent misuse of digital wallets for illegal activities.”

Khalti Payment Service CEO Binay Khadka says, “The Khalti digital wallet, has been working for the financial inclusion of all Nepalese for the last 7 years. It allows payment according to the guidelines of Nepal Rastra Bank,” he adds, “I am confident that this collaboration of leading digital wallets will prove to be a stepping stone for the financial participation of all Nepalis as it is mandatory.”

He also said that he expects cooperation from all the regulatory bodies including Nepal Rastra Bank in this collaboration.”

Likewise, Pravin Regmi, IME Pay CEO declared, “KYC authentication is the first step towards transparent financial transactions and corruption.”

PrabhuPay CEO Bikki Shahi stresses the importance of KYC and says that it plays a role in making cashless transactions easier and more secure while also help preventing crimes.

Check out: Khalti Finally Embeds FonePay Scan for Digital Payment

Time for your KYC update

As the top digital wallet service providers urge amidst the NRB ruling, it’s time now that you update your KYC form. This is easy too. You can find it from the settings or your home screen of the digital wallet app.

In terms of details, you need to submit your name, date of birth, marital status, etc. You may also need to submit a copy of your citizenship in an electronic form. It only requires a few minutes.

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