RBI's September 15 re-KYC deadline threatens small UPI merchants' payments
Heads up: The Reserve Bank of India (RBI) is rolling out a re-KYC deadline on September 15, 2026, and it could mean trouble for small businesses.
Small-scale offline merchants deploying QR codes for UPI payments and a million small online business entities might not meet the new requirements, risking payment pauses for merchants that fail re-KYC.
Payment players hire staff for KYC
The re-KYC process is tough for smaller or informal businesses since many don't have all the paperwork needed.
Payment players had to hire additional staff for in-person KYC, but only about 80% are expected to finish on time.
While most big transactions won't be affected because these merchants have a smaller market share, the rule aims to bring standardization in the KYC norms, but it's proving tricky for those at the grassroots.