PPI Wallet KYC

Introduction

This module powers the KYC (Know Your Customer) process for an Open-Loop Prepaid Payment Instrument (PPI) Wallet, in line with the regulatory framework laid down by the Reserve Bank of India (RBI).

An Open-Loop PPI Wallet enables users to perform a wide range of financial transactions, including fund transfers, merchant payments, ATM withdrawals, and utility payments, across multiple platforms and networks (including interoperable systems like UPI, IMPS, and PoS terminals).

To ensure secure usage and regulatory compliance, all wallet users are required to undergo KYC verification, which is handled by this module.

What is an Open-Loop PPI Wallet?

An Open-Loop PPI Wallet is a fully KYC-compliant digital wallet that can be used beyond the issuing platform, including:

• ATM Withdrawals
• POS (Point-of-Sale) Terminals
• Online Merchant Payments
• Bank Transfers (NEFT/IMPS/UPI)

This is unlike semi-closed wallets, which are limited to specific merchants or ecosystems.

Why KYC is Mandatory?

• 🔒 Security: Ensures verified identity for every wallet user
• 🏦 Interoperability: Enables full access to interoperable financial systems
• 📜 RBI Compliance: Meets regulatory mandates under PPI Master Directions
• 💳 Transaction Limits: Allows higher load and usage limits (up to ₹2,00,000/month for full KYC users)
• 🤝 Trust & Transparency: Builds confidence in the system for both users and partners

KYC Process Flow

1. User Registration

   • Collect basic user info (name, mobile, email)

2. Minimum KYC (Optional for limited access)

   • Verify via mobile OTP and PAN or Aadhaar (limited features)

3. Full KYC Submission

   • Upload Aadhaar + PAN or perform Video KYC/CKYC

4. Verification

   • Automatic or manual checks (via APIs or KYC partner)

5. Wallet Upgrade

   • Access to full wallet features (Open-Loop capabilities unlocked)

6. Status Handling

   • Real-time KYC status updates: Pending, Verified, Rejected, Hold

Key Features

• ✅ Aadhaar, PAN & Video KYC Support
• ✅ RBI-Compliant Document Storage & Validation
• ✅ Secure APIs for KYC Data Submission & Status Checks
• ✅ Integration with UIDAI, CKYC, or other verification partners
• ✅ Auto-retry or escalation workflows for failed KYC

Integration Points

• Frontend: Web & Mobile SDKs for document upload and video KYC
• Backend: API endpoints for submission, verification, and status tracking
• Admin Panel: For manual overrides, document review, and audit logs

Security & Compliance

• All data is encrypted at rest and in transit
• Aadhaar masking and data redaction as per UIDAI guidelines
• Full audit trail of all actions
• Periodic re-validation and expiry handling as per RBI norms