Business of E-wallet companies are affected by RBI guidelines for mandatory KYC in E-wallet. Last date for updation of KYC in E-wallet was 28th Feb. 2018. However those who have not updated KYC in their E-wallet are not going to lose their money in E-wallets. They are allowed to use money already available in E-wallet but for transaction like transfer money to E-wallet from bank, bank to E-wallet requires mandatory updation of KYC. To enhance its business, Paytm planned to enter investment advisory business.
Paytm Money, which is a whole owned subsidiary of Paytm, has received approval of SEBI to become a registered investment Advisor. Paytm Money is planning for launch date in the month of April for offering investment and wealth management products to consumers.
In the starting time, company has planned only a limited roll out. Paytm Money, planning for offering direct plans of mutual funds investments with zero commission. Entry of Paytm Money in Investment market, will make wealth management easier and more accessible for consumers at large.