The recent introduction of Authentication and eKYC User Agency (AUA/KUA) licensing fee by UIDAI had shaken up the whole community. The licensing fee was increased from Rupees Five Thousand to Rupees Twenty Lakhs for two years AUA/KUA access, a whopping 39900% increase. If this is news to you, you can find more details of the AUA/KUA licensing fee on our blog.The increase in licensing fee is clearly aimed at reducing the number of firms registering AUA/KUAs. With such huge licensing fees, only companies with large Aadhaar Authentication/ eKYC transaction volumes find it viable to register as a KUA or an AUA. So does it mean Aadhaar authentication and eKYC is not available to the majority of Indian companies?
New Route to Aadhaar eKYC and Authentication
Companies which do not have such transaction volumes can get the services from existing KUAs/AUAs who are ready to provide such services to other entities. UIDAI has provisions that would enable an AUA to register other entities Sub-AUAs and enables Aadhaar authentication for those firms, Similarly, existing KUA's can share eKYC data with other entities. AUAs/KUAs that provide Aadhaar authentication and eKYC services to other entities should make sure that they are in compliance with Aadhaar Regulations and AUA/KUA agreement terms.UIDAI is imposing huge penalties on AUA/KUAs that do not comply with the Aadhaar regulations or AUA/KUA agreement terms. From now on, AUA/KUA would have to pay a penalty up to Rs. 1 lakh per day for each day of noncompliance from the date of actual commission of violation regardless of the date of discovery of the violation. If compliance is not ensured with within 15 days of issuance of notice by UIDAI on the first contravention, disincentives up to Rs. 2 lakh per day for each day of non-compliance. So you better comply or go bankrupt.
This means if you decide to keep the AUA/KUA registration and take advantage of the opportunity to provide Aadhaar authentication and eKYC services to other entities you need to make sure that you are complying with all the important regulations and agreement terms. If you are not sure, let us know; Finahub will be able to help you. Finahub can provide the software solutions that enable you to provide eKYC and authentication service to other entities in compliance with UIDAI regulations.
We, Finahub, are experts in Aadhaar related products and services like eSign, eKYC, Authentication etc. If you want to know how your enterprise can start using it, please give us a call @ 0484 2388285 or email us at [email protected]
