Category: News

Welcome to our News category, your trustworthy hub for all the latest updates and happenings at Signzy, a leading light in the fintech arena. With our continuous strides in product innovation, technological advancements, forging strategic partnerships, and earning industry accolades, there’s always a buzz of activity at our end. This category is dedicated to bringing you all the noteworthy news and developments related to our organization.

Designed with the intent to keep you well-informed about our journey, our milestones, and our forward-looking vision, our News category is an embodiment of our commitment to transparency. We believe in fostering an open dialogue with our customers, partners, and followers, and this dedicated news section serves as a testament to that pledge.

In this space, you’ll come across updates about our latest collaborations and strategic alliances that enable us to widen our horizons and deliver superior solutions. You’ll gain insights into the accolades we’ve been bestowed with for our pioneering work in the fintech sector. Above all, you’ll get a sneak peek into the trail we’re blazing within the fintech ecosystem.

We cordially invite you to stay connected with us through our News category. Be a part of our journey as we persistently push the boundaries of what’s possible in fintech, revolutionizing the operational modalities of businesses. Whether you’re a client, a partner, or a follower, this space will keep you abreast of our strides and successes. Join us as we navigate the thrilling landscape of fintech, one news update at a time.

risk-based approach to KYC

RBI’s Risk-Based Approach to KYC: A Game-Changer!

Posted on | by Signzian

The Reserve Bank of India (RBI) has always played a pivotal role in shaping the regulatory landscape of the financial sector. In recent times, it has been focusing on updating and improving Know Your Customer (KYC) norms to align with global standards and accommodate the evolving financial environment. One significant development in this regard is the adoption of a risk-based approach to KYC.

In this blog post, we will explore the latest RBI notifications regarding this approach and its implications.

Understanding KYC: A Brief Overview

KYC, or Know Your Customer, is a mandatory process that financial institutions must perform to identify and verify the identity of their clients. This process helps prevent money laundering, fraud, and other financial crimes by ensuring that institutions have sufficient information about their customers. Traditionally, institutions used a one-size-fits-all approach, where every customer underwent the same level of scrutiny.

However, the risk-based approach introduced by RBI is a game-changer. It is a crucial component of the global anti-money laundering (AML) and counter-terrorist financing (CTF) framework. It’s a set of procedures and processes that financial institutions must follow to verify and identify their customers. The objective is to prevent illicit activities like money laundering and terrorist financing while ensuring the integrity of the financial system.

The Traditional Approach vs. The Risk-Based Approach

Historically, financial institutions employed a one-size-fits-all KYC approach. This approach was often resource-intensive, leading to higher costs for both the institutions and their customers. The risk-based approach, on the other hand, tailors KYC requirements to the perceived risk associated with each customer.

Latest RBI Notifications on the Risk-Based Approach

To stay in alignment with international standards and the evolving financial landscape, RBI has introduced a series of notifications related to the risk-based approach for KYC. Some of the key aspects of these notifications include:

  • Risk Profiling: RBI requires financial institutions to develop a risk profile for each customer, considering factors like their identity, location, nature of business, and transaction history.
  • Simplified KYC for Low-Risk Customers: Customers deemed to be low-risk will now face simplified KYC requirements, reducing the bureaucratic burden and making onboarding smoother.
  • Enhanced Due Diligence for High-Risk Customers: For high-risk customers or those with complex transactions, stricter due diligence measures are mandated to minimize potential risks.
  • Continuous & Periodic Monitoring: Financial institutions are required to implement systems for ongoing monitoring of customer transactions, enabling the detection of unusual or suspicious activities. Periodic KYC monitoring is a vital part of maintaining the integrity of the financial system, reducing risks, and complying with regulatory requirements. By regularly reviewing and updating customer information, financial institutions can better protect themselves from illicit activities, ensure the accuracy of customer profiles, and foster trust within the industry.
  • Technology Integration: Embracing technology and data analytics is encouraged to make KYC processes more efficient and accurate.

Key Elements of the Risk-Based Approach

  • Customer Risk Assessment: Financial institutions must assess the risk associated with each customer based on various factors, including their business activities, location, and transaction patterns. This risk assessment helps institutions understand the likelihood of a customer being involved in money laundering or other financial crimes.
  • Categorization: After the risk assessment, customers are categorized into different risk categories. These categories typically include low risk, medium risk, and high risk. The categorization is crucial in determining the extent of due diligence required for each customer.
  • Enhanced Due Diligence (EDD): High-risk customers require the most comprehensive due diligence. EDD may include more extensive document verification, source of funds investigations, and continuous monitoring of transactions.
  • Simplified Due Diligence (SDD): Low-risk customers, on the other hand, may be subject to simplified due diligence, which involves a more streamlined verification process. However, institutions must still ensure that they have essential customer information.

Benefits of the Risk-Based Approach

The risk-based approach for KYC offers several advantages to financial institutions and the broader financial ecosystem:

  • Resource Allocation: Institutions can allocate their resources more efficiently by focusing their efforts and investments on high-risk customers, reducing the burden on low-risk ones.
  • Enhanced Effectiveness: By customizing KYC procedures based on risk, institutions can better detect and prevent financial crimes.
  • Improved Customer Experience: Low-risk customers can enjoy a more convenient onboarding process, while high-risk customers receive the thorough scrutiny they require.
  • Regulatory Compliance: Adhering to the risk-based approach aligns financial institutions with the latest RBI regulations, reducing the risk of penalties and legal issues.

Challenges and Considerations

While the risk-based approach offers numerous benefits, it also presents some challenges:

  • Data Accuracy: The accuracy of risk assessments heavily depends on the quality and availability of data. Institutions must ensure their data sources are reliable and up-to-date.
  • Consistency: Maintaining consistency in risk categorization and due diligence can be challenging, as it requires continuous monitoring and adjustment.
  • Staff Training: Employees involved in KYC processes must be adequately trained to apply the risk-based approach effectively.

Conclusion

Risk-based approach for KYC are a positive step towards modernizing the regulatory framework in the financial sector. By focusing on customer risk profiles and embracing technology, this approach aims to strike a balance between regulatory compliance and customer convenience. As the financial landscape continues to evolve, financial institutions must adapt to these changes to stay compliant, secure, and competitive. Ultimately, the risk-based approach represents a crucial shift in the world of KYC, promoting more efficient practices while maintaining the integrity of the financial system.

The RBI’s latest notification on the risk-based approach for KYC marks a significant step forward in ensuring the integrity of the Indian financial system. By adopting a more nuanced and tailored approach to customer due diligence, financial institutions can enhance the effectiveness of their anti-money laundering and anti-fraud efforts while providing a smoother onboarding experience for low-risk customers. However, to fully benefit from this approach, institutions must invest in robust system and data analytics, employee training and implementation of ongoing & periodic risk assessment processes. In doing so, they can stay compliant with RBI regulations and contribute to a more secure and transparent financial landscape in India.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs, easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.
Contact us directly!

RBI's Master Direction (MD) on KYC is an important tool in the fight against money laundering and terrorist financing.

Amendment to the Master Direction (MD) on KYC by RBI

Posted on | by Signzian

What is RBI’s Master Direction (MD) on KYC? 

The Master Direction (MD) on KYC is a set of guidelines issued by the Reserve Bank of India (RBI) to regulated entities (REs) on the conduct of customer due diligence (CDD). The MD on KYC is aimed at preventing money laundering and terrorist financing.

The MD on KYC sets out the following requirements for REs:

  • REs must identify their customers and verify their identity. This can be done by collecting and verifying the customer’s name, address, date of birth, and other identifying information.
  • REs must understand the nature of the customer’s business and the source of their funds. This can be done by asking the customer questions about their business and their sources of income.
  • REs must conduct enhanced due diligence for high-risk customers. This includes politically exposed persons (PEPs) and those who are residents in high-risk jurisdictions.
  • REs must monitor customer accounts for suspicious activity. This includes transactions that are large, unusual, or appear to be linked to money laundering or terrorist financing.
  • REs must report suspicious activity to the Financial Intelligence Unit of India (FIU-IND). The FIU-IND is India’s central agency for receiving, processing, analyzing, and disseminating information relating to suspected or actual instances of money laundering or terrorist financing.

The MD on KYC is an important tool in the fight against money laundering and terrorist financing. The requirements set out in the MD on KYC help REs to identify and verify their customers, understand the nature of their customer’s business and the source of their funds, and monitor customer accounts for suspicious activity. These requirements help to make it more difficult for criminals to launder money or finance terrorism through REs.

The Key Changes by RBI to Master Direction on KYC

The Reserve Bank of India (RBI) has amended its Master Direction (MD) on KYC to strengthen customer due diligence (CDD) and risk-based monitoring requirements for regulated entities (REs). The amendments, which came into effect on May 10, 2023, are aimed at preventing money laundering and terrorist financing.

The key changes to the MD on KYC include:

  • Enhanced customer due diligence (CDD) requirements: REs will now be required to conduct enhanced CDD for high-risk customers, including politically exposed persons (PEPs) and those who are residents in high-risk jurisdictions.
  • Risk-based monitoring requirements: REs will now be required to implement risk-based monitoring systems to identify and monitor suspicious activity.
  • New reporting requirements: REs will now be required to report to the Financial Intelligence Unit of India (FIU-IND) certain types of suspicious activity, including wire transfers of more than Rs.50,000.

The amendments to the MD on KYC are a positive step in the fight against money laundering and terrorist financing. However, it is important to note that these changes are just one part of the solution. India needs to do more to combat these crimes, including strengthening its anti-money laundering and terrorist financing laws, improving its enforcement of these laws, and increasing public awareness of the risks of money laundering and terrorist financing.

Here are some of the benefits of the Amendment to the Master Direction (MD) on KYC by RBI:

  • Enhanced customer due diligence (CDD) requirements: The enhanced CDD requirements will help to ensure that REs have a better understanding of their customers and their customers’ financial activities. This will make it more difficult for criminals to launder money or finance terrorism through REs.
  • Risk-based monitoring requirements: The risk-based monitoring requirements will help REs to identify and monitor suspicious activity. This will help to prevent money laundering and terrorist financing before it happens.
  • New reporting requirements: The new reporting requirements will help the FIU-IND to identify and investigate potential cases of money laundering and terrorist financing. This will help to disrupt and dismantle criminal networks.

How Signzy’s KYC Solution streamlines with the RBI’s Master Direction on KYC?

Signzy’s KYC solution is a powerful tool that can help financial institutions to comply with KYC regulations and reduce the risk of money laundering and terrorist financing.

Here are some of the benefits of Signzy’s KYC solution:

  • It is comprehensive and automated: Signzy’s KYC solution automates the process of collecting and verifying customer information, transaction monitoring, and reporting. This can help financial institutions to save time and money, and to reduce the risk of human error.
  • It is compliant with international standards: Signzy’s KYC solution is aligned with international standards for combating money laundering and terrorist financing. This helps financial institutions to comply with these standards and avoid the penalties that can result from non-compliance.
  • It is easy to use: Signzy’s KYC solution is easy to use and can be integrated with existing systems. This makes it easy for financial institutions to implement the solution and to start benefiting from its features.
  • It is affordable: Signzy’s KYC solution is affordable and can be customized to meet the needs of financial institutions of all sizes. This makes it a cost-effective solution for financial institutions looking to improve their KYC compliance.

Final Thoughts

The RBI’s Master Direction (MD) on KYC is an important tool in the fight against money laundering and terrorist financing. The requirements set out in the MD on KYC help REs to identify and verify their customers, understand the nature of their customer’s business and the source of their funds, and monitor customer accounts for suspicious activity. These requirements help to make it more difficult for criminals to launder money or finance terrorism through REs.

RBI Rules for Wire Transfer

RBI Updates Wire Transfer Rules to Combat Money Laundering

Posted on | by Signzian

The Reserve Bank of India (RBI) has updated its wire transfer rules in an effort to combat money laundering. The new rules, which came into effect on May 10, 2023, require banks and other financial institutions to collect more information about wire transfer senders and recipients.

The new rules also require banks to report all wire transfers of more than $50,000 to the Financial Intelligence Unit of India (FIU-IND). The FIU-IND is India’s central agency for receiving, processing, analyzing, and disseminating information relating to suspected or actual instances of money laundering or terrorist financing.

The RBI’s decision to update its wire transfer rules is part of a broader effort to combat money laundering and terrorist financing. Under the new rules, banks and other financial institutions must collect the following information for all wire transfers:

  1. The name of the sender and recipient
  2. The sender’s and recipient’s account numbers
  3. The reason for the wire transfer
  4. The source of the funds being transferred

Banks and other financial institutions are also required to verify the identity of the sender and recipient of each wire transfer. This can be done by requiring the sender and recipient to provide government-issued identification documents.

The RBI has said that the new rules are necessary to “strengthen the fight against money laundering and terrorist financing.” The RBI has also said that the new rules will not have a significant impact on the cost of wire transfers for businesses and individuals.

What does New Wire Transfer Rules mean for businesses and individuals?

The new wire transfer rules by RBI mean that businesses and individuals will need to provide more information when sending or receiving wire transfers. This information will include the name, address, and account number of the sender and recipient. The new rules also require businesses and individuals to provide a reason for the wire transfer.

The new rules are designed to prevent money laundering and terrorist financing. By requiring businesses and individuals to provide more information, RBI can better track and monitor wire transfers. This will help to identify and stop suspicious transactions.

It will have a number of implications for businesses and individuals. Businesses will need to update their systems and procedures to comply with the new rules. This may involve investing in new software and training staff. Individuals may also experience some inconvenience as they will need to provide more information when sending or receiving wire transfers.

However, the new rules are important for protecting the financial system from money laundering and terrorist financing. By complying with the rules, businesses and individuals can help to keep their money safe and help to make the financial system more secure.

Here are some of the key implications of the new wire transfer rules for businesses and individuals:

  • Businesses will need to update their systems and procedures to comply with the new rules.
  • Individuals may experience some inconvenience as they will need to provide more information when sending or receiving wire transfers.
  • They are designed to prevent money laundering and terrorist financing.
  • By complying with the rules, businesses and individuals can help to keep their money safe and help to make the financial system more secure.

What can businesses and individuals do to comply with the new rules?

Businesses and individuals can comply with the new RBI wire transfer rules by:

  1. Gathering the required information about the sender and recipient of each wire transfer.
  2. Verifying the identity of the sender and recipient of each wire transfer.
  3. Using a bank or other financial institution that is familiar with the new RBI wire transfer rules.

By taking these steps, businesses and individuals can help to ensure that they are complying with the new RBI wire transfer rules and that they are not inadvertently aiding in money laundering or terrorist financing.

Implications of the Wire Transfer Rules

The RBI’s updated wire transfer rules are a step in the right direction, however, they are just one part of the solution. India needs to do more to combat money laundering and terrorist financing, including strengthening its anti-money laundering and terrorist financing laws, improving its enforcement of these laws, and increasing public awareness of the risks of money laundering and terrorist financing.

Here are some of the implications of the new rules:

  1. Increased compliance costs for banks and other financial institutions: The new rules will require banks and other financial institutions to collect more information about wire transfer senders and recipients, and to report all wire transfers of more than Rs.50,000 to the FIU-IND. This will increase the compliance costs for these institutions.
  2. Reduced anonymity for wire transfer senders and recipients: The information required about wire transfer senders & recipients will reduce the anonymity of these individuals, which could make it more difficult for them to launder money or finance terrorism.
  3. Improved detection of money laundering and terrorist financing: The new rules will require banks and other financial institutions to report all wire transfers of more than Rs.50,000 to the FIU-IND. This will help the FIU-IND to identify and investigate potential cases of money laundering and terrorist financing.

How can Signzy help in the KYC of Wire Transfers? 

One of the ways that Signzy can help with wire transfer compliance is by automating the process of collecting and verifying customer information at a reasonable cost. Our solution also helps to reduce the risk of human error and ensure that all required information is collected efficiently. The solution is best to comply with wire transfer regulations and reduce the risk of money laundering and terrorist financing.

Here are some of the specific ways that Signzy can help with compliance:

  • Customer onboarding: Signzy can help financial institutions to onboard new customers quickly and easily. Our platform automates the process of collecting and verifying customer information. This can help to reduce the risk of human error. We have ready-to-use flows to quickly verify KYC and comply with applicable laws.
  • Transaction monitoring: Our platform uses artificial intelligence and machine learning to identify and flag suspicious transactions. Further it helps to prevent money laundering and terrorist financing.
  • Reporting: The platform can generate reports on customer activity, transaction monitoring, and other compliance-related data.

Our Take

Overall, the RBI’s updated wire transfer rules are a positive step in the fight against money laundering and terrorist financing. But this is not it. It is important to note that these rules are just one part of the solution. India needs to do more to combat these crimes, including strengthening its anti-money laundering and terrorist financing laws, improving its enforcement of these laws, and increasing public awareness of the risks of money laundering and terrorist financing.

New VPN Norms – Government’s Take On Privacy

Posted on | by Signzian

VPN has always been a subject of debate in India. 

As per AtlasVPN’s report, India had over 348 million VPN downloads in 2021. Despite having such popularity in 2021, the government recommended a VPN ban in India for privacy concerns. Although the ban didn’t occur, the Indian government has introduced some new VPN norms or regulations for users, mainly for VPN companies. 

In April 2022, India’s Computer Emergency Response Team (CERT) announced a new regulation that VPN companies in India will have to collect and store customers’ data for at least five or more years. 

Unsurprisingly, these new VPN Norms are creating a lot of buzzes. How will this new law affect VPNs? How will it impact users? Are VPNs illegal in India? There are lots of questions arising. 

To answer all your questions, we’ve compiled everything you need to know about the new VPN norms in India. But before digging deeper, let’s start with the basics: What is a VPN? 

What Is A VPN?

A virtual private network (VPN) is a technology that allows you to connect securely to private networks over public networks. It creates an encrypted connection between your computer and a server so that your internet traffic is encrypted and can’t be intercepted by anyone else.

With a VPN, you can access websites in countries where they might not be available, or you can use it to get around censorship (a lot of countries have strict firewalls that block specific sites), secure remote work, and browse the internet anonymously.

What Are The New VPN Norms?

The key takeaways from the new VPN rules are:

  • According to the new law, all VPNs must gather and store user data (user names, physical address, email address, and phone numbers) for five or more years. 
  • VPN companies also have to keep a log of the reason behind using the service. 
  • VPNs should record all the IP addresses used by users to register. 
  • Along with VPN services, virtual service network providers, data centers, and cloud service providers have also been requested to keep track and store similar user data. 
  • VPN services must report cybersecurity incidents to CERT within six hours of becoming aware of them. 

What Is the Government’s Take On These New VPN Norms?

The main purpose of the government behind imposing these new VPN rules is to improve the “cyber security posture” and ensure people have access to a “safe and trusted internet”.

The CERT also informed that they had identified gaps in safeguarding against online threats. That’s why they’ve published the new norms to prevent cyber attacks. 

“If you are a VPN provider, if you are a data centre operator, if you are a cloud provider, and if you’re an enterprise, you have an obligation to know who’s using your VPN infrastructure… If there is a detected cyber incident or cyber breach — from one of the people using your VPN or your cloud or your data centre, it is your obligation to produce the data,” – Rajeev Chandrasekhar,  Union Minister of State for Electronics and Information Technology

How The New VPN Norms Impact Users & Companies 

The new rules received a lot of backlashes from the VPN companies. After all, the primary goal of VPN services is not to collect users’ personal information. 

The new norms will force these companies to store customer data which will increase costs and affect user privacy. 

India is among the top 10 VPN users around the globe. Various companies and individuals use VPN services to safely access private WiFi networks, remain anonymous, and many more. 

Several techies, students, and companies use VPNs to protect their data from third-party apps.

But with the new norms, they must go through a KYC process while registering a VPN. So, all VPN users will have their private data exposed to the government. 

It is also unclear how the government may use this data in the future. This raises a concern about the right to privacy for every individual. 

The Internet Freedom Foundation said the new norms lead to more concerns, such as the private enterprises and government “having more data than necessary”.

Several VPN companies like NordVPN, ProtonVPN, SurfShark, and ExpressVPN, have said that they are planning not to follow the newly imposed rules of India. After all, privacy is the main reason behind users investing in their premium plans. 

As per several VPN companies, they’ll continue to offer their no-logs policy to the users and threaten to pull back their service from India. 

The Bottom Line 

Despite all the backlashes from cybersecurity experts, stakeholder companies, and business advisory groups, the Indian government is pretty much firm on their new VPN norms. 

“If you don’t want to go by these rules, and if you want to pull out, then frankly … you have to pull out.” – Rajeev Chandrasekhar,  Union Minister of State for Electronics and Information Technology

The privacy experts have sought public consultation on this matter, asking for more tech industry involvement to find a solution that suits every individual. Lastly, it’s needless to say that it will be interesting to see if the VPN companies manage to implement the new norms before the deadline of September 25, 2022.   

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs, easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.
You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

KYC for Online Gaming Platforms

Why Mandatory KYC for Online Gaming Platforms?

Posted on | by Signzian

Mandatory KYC for Online Gaming Platforms – is what the Ministry of Electronics and Information Technology has drafted amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. It states that due to rapid growth in online gamers, mandatory KYC for Online Gaming Platforms & gamers is to guarantee that Gaming Companies adhere to Indian laws and provide users with protection against potential harm.

Gaming has become a part of everyday life for many people, from casual mobile games to more hardcore console and PC gaming. As the popularity of gaming continues to grow, so does the importance of having an appropriate level of safety and security for gamers.

In this blog post, let’s explore what this proposal entails and why it is important. We will also discuss how it may affect both casual and professional gamers.

What is the government proposing for Online Gaming Platforms?

The Ministry of Electronics and Information Technology (MeitY) proposed an amendment to bring online gaming under the ambit of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

The amendments seek to ensure due diligence from online gaming intermediaries so that users are not exposed to any activities breaching Indian law – such as gambling or betting – and also require a registration mark on all online games registered by self-regulatory bodies.

The Draft Rules

  1. A gamer must be informed of all online games offered by the gaming intermediary, as well as its policy regarding withdrawals and refunds of deposits made with the expectation of winnings. Also, how winnings will be determined and distributed, as well as the fees the user will have to pay for each game. 
  2. There should be a mandatory know-your-customer norm for verification (KYC).
  3. A user will need to be aware of the potential for addiction and the financial risks associated with each game.
  4. As part of the registration process of the game, the self-regulatory body must set up criteria for its content to protect the gamer from harm, including self-harm.
  5. Only games that are approved by the self-regulatory body will be permitted to operate legally in India.
  6. Five members will create the self-regulatory body’s board of directors, with expertise in online gaming, public policy, IT, psychology, and medicine.
  7. It is responsible for ensuring that the registered games do not contain anything that is not in the interest of India’s sovereignty, integrity, defense, security, friendly relations with foreign countries, or public order or that incites a cognizable offense.
  8. The Centre should be informed about the online games registered by all self-regulatory bodies, along with a report detailing the criteria for registering a particular game.

Why is there a need for such rules?

It is for protecting users from potential harm caused by skill-based games. 

  1. Innovation: As online gaming platforms are getting regulated as intermediaries and are subject to due diligence requirements, the online gaming sector will be promoted and innovation will be encouraged.
  2. Women Gamers Safety: Approximately 40 to 45% of Indian gamers are women, which makes keeping the gaming ecosystem safe all the more important.
  3. Because they generate revenue that needs proper regulation: In 2025, the Indian mobile gaming industry is to generate $5 billion in revenue. The industry grew at a CAGR of 38 percent between 2017 and 2020, versus 8% in China and 10% in the US.
  4. Credibility & Transparency: In addition to ensuring greater transparency, consumer protection, and investor confidence, this framework will boost the legitimate domestic online gaming industry.

What are the pros of KYC for Online Gaming Platforms?

The proposed mandatory KYC for Online Gaming Platforms has generated a lot of debate, with some people arguing that it is a necessary step to prevent underage gaming and others asserting that it will infringe on the privacy of gamers. Here, we take a look at the pros of the proposed policy: 

1) It would help to prevent underage gaming & Fraud: The proposed policy would require online gamers to verify their age before being able to play, which would help to prevent minors from accessing age-inappropriate content.

2) It could help combat cheating: By mandating age verification, it would become more difficult for people to create multiple accounts to cheat in online games.

3) It would promote responsible gaming: Making online gamers verify their age would encourage them to play responsibly and not engage in excessive gaming.

Our take

The government’s proposing mandatory KYC for Online Gaming Platforms & gamers is a step in the right direction toward protecting citizens from online threats and fraud. With the implementation of this measure, users can be assured that their identities are secure when engaging with other players or playing games online. It will also help prevent illegal activities such as money laundering and identity theft which have been particularly rampant on gaming websites lately. In essence, this proposed measure could be immensely beneficial for both players and regulatory authorities alike by promoting safety and security in the digital world.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.
You can reach out to our team at reachout@signzy.com

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