Overview

We have introduced improvements to the KYC validation process during the subscription flows. 

Previously, we observed a significant number of cases in which KYC checks returned timeouts or unclear responses from the vendor. These cases were treated as non-compliant by the system, which meant some users were blocked from subscribing even though they were actually KYC compliant.

To address this, we have introduced a third state (i.e. inconclusive KYC) specifically for such scenarios. Users in this state are now allowed to proceed with the subscription while we retry verification in the background. This reduces unnecessary drop-offs while still ensuring compliance checks are completed.


How Does the New KYC Retry System Work?

When a user submits their PAN at the billing step in the subscription flow:

Based on the response received from NDML, we take the below actions: 

  • User is Compliant → User is allowed to proceed to the next step.

  • User is Non-Compliant → User cannot proceed to the next step.

  • Inconclusive status (timeout errors, downtimes, etc.) → 

    • We retry the KYC check once again.

      • If still inconclusive, allow the user to proceed.

      • We continue verification in the background

  • For subscribed users with inconclusive KYC status, we automatically retry verification multiple times over the next 3 days

    • If a conclusive status is received:

      • Compliant users → Subscription continues.

      • Non-compliant users → They should be unsubscribed from the smallcase. 

    • If no conclusive status is received at the end of the 3 days, we will unsubscribe these inconclusive status users. 


This ensures users are not blocked due to temporary validation issues.

What Happens to Payments During This Period?

For subscriptions using Digio or PayU eNACH mandates:

  • We do not debit the user immediately.

  • Debit on the Digio and PayU mandates shall happen only when the user is KYC compliant. 


If a user remains:

  • Non-compliant → Mandate is cancelled and no debit occurs.

  • Inconclusive after 3 days → User is unsubscribed and mandate is cancelled.

This ensures no debit is processed for users who fail KYC validation.

Handling Non-compliant Users

You now have a toggle under your Profile tab > Compliance section to decide how non-compliant users are handled.



Option 1: Automatically Unsubscribe users (Toggle is ON)

(Recommended)

If the toggle is enabled:

  • We automatically:

    • Unsubscribe users who are:

      • Non-compliant, or

      • Inconclusive after 3 days

    • Send subscription cancellation emails to users

  • You will receive a day-end report listing all affected users.

This option reduces manual operation effort and ensures compliance is handled automatically


Option 2: Review and handle manually (Toggle is OFF)

If the toggle is disabled:

  • We will send you a day-end report of non-compliant users and inconclusive users (as at the end of the 3 day window).

  • You can decide how to handle these cases.

  • No automatic unsubscription will be performed by us.

  • In case of Digio/PayU mandates, the mandate would not be debited by us.