Payments banks system should be fraud free for its growth: Paytm


Payments banks are facing KYC challenges as mobile numbers cannot be customer IDs

Payments banks will help bring millions of people into the financial system but there is a need to make the system fraud free, a top official of Paytm Payments Bank said today. Paytm Payments Bank CEO Shinjini Kumar also said that they are facing the challenge of KYC norms as mobile numbers of the customers cannot be their IDs.

“One of the biggest problems that we are going to address is that your mobile number can’t be your ID because there is so much churn in the mobile industry that my number may go to you”, Kumar said at an event on payments banks in India organized by Cuts International. So, that is not the solution to do the KYC, she said.

At present, payment wallet services offered by various players can be easily accessed through mobile number or customer ids provided after mobile number verification.

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She said payments bank is about taking millions of people to be included into the financial system. Kumar suggested that the industry may go with a medium risk KYC where lower risk credit can be given. However she also emphasized that there is a need to make the system fraud free. In digital space people expect services perfect from the day one, she added. “People have higher expectation. We will build on that but it is to be understood that a system has to be in place first.”

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