Paytm, the Indian version of e-payments and e-commerce brand has allowed the consumers to load the money into its wallet even if they have not completed their know-your-consumer (KYC) formalities.
It seems like Paytm is working on the latest regulations issued by the RBI which states compulsive KYC, where users can load money into the accounts through gift vouchers on the platform.
The gift vouchers will not allow the user to send the money to others or it cannot be either sent to the bank's account. They will have an expiry date of one year, which is a standard practice among the players issuing such vouchers.
The prepaid payment instruments (PPIs) or the digital wallets are under severe pressure after RBI announced new regulations.
Paytm is trying to diversify into other businesses from its core e-wallet business. Its move to issue gift vouchers is a tactic used to reduce the damage to its non-KYC e-wallet users.
Paytm is trying to transfer the users from e-wallet to Unified Payments Interface or UPI platform.