Thursday, May 7, 2020

Insurance, securities entities to use Aadhaar authentication services under PMLA

The Department of Revenue operating under the Finance Ministry of India has now granted permission to 29 Insurance companies and 9 securities and stock entities to make use of the services of Aadhaar authentication provided by the UIDAI (Unique Identification Authority of India). This will make real-time eKYC (Electronic Know Your Customer) possible for these companies. However, the customer doesn't need to choose Aadhaar authentication services. When your PAN card details are being submitted you have the freedom to not undertake Aadhaar authentication.

  • Permission granted to specific insurance companies and securities entities by the Finance Ministry of India.
  • They can make use of Aadhaar authentication services under the PMLA (Prevention of Money Laundering Act, 2002).
  • The insurance companies have to abide by the rules set by their regulatory authority, IRDA ( Insurance Regulatory Authority of India).
  • The securities entities have to be subject to the rules of SEBI (Securities and Exchange Board of India).
  • Have to abide by the privacy/security rules under the Aadhaar act.
  • The SEBI and IRDA will decide whether these companies are maintaining the privacy and security laws under the Aadhaar act.
  • Can perform real-time Aadhaar eKYC.
  • Do not have to submit documents for the KYC process.
  • Beneficial to both investors and customers especially the ones operating on a small scale/ the retailers.

List Of The 29 Insurance Companies And 9 Stock/Security Entities

When it comes to insurance companies the permission for eKYC has been granted to 20 life insurers operating privately (Registered with the IRDAI), 6 general insurance organizations and 6 health insurance companies (stand-alone). Approval for eKYC has also been granted to 9 securities/stock entities. The 29 Insurance companies registered with the IRDA that has been granted permission by the Finance Ministry of India for eKYC are the following.

  1. Aditya Birla Sun Life Insurance Company Ltd
  2. Acko General Insurance Ltd
  3. Aegon Life Insurance Company Ltd
  4. Apollo Munich Health Insurance Company Ltd
  5. Bajaj Allianz Life Insurance Company Ltd
  6. Bharti AXA Life Insurance Company Ltd
  7. Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd
  8. Edelweiss Tokyo Life Insurance Company Ltd
  9. Exide Life Insurance Company Ltd
  10. Future General India Insurance Company Ltd
  11. Future General India Life Insurance Company Ltd
  12. HDFC Life Insurance Company Ltd
  13. HDFC Ergo General Insurance Company Ltd
  14. ICICI Prudential Life Insurance Company Ltd
  15. IDBI Federal Life Insurance Company Ltd
  16. India First Life Insurance Company Ltd
  17. Kotak Mahindra General Insurance Company Ltd
  18. Kotak Mahindra Life Insurance Company Ltd
  19. Max Life Insurance Company Ltd
  20. Manipal Cigna Health Insurance Company Ltd
  21. PNB MetLife India Insurance Company Ltd
  22. Pramerica Life Insurance Ltd
  23. Reliance Nippon Life Insurance Company Ltd
  24. Religare Health Insurance Company Ltd
  25. Royal Sundaram General Insurance Company Ltd
  26. SBI Life Insurance Company Ltd
  27. SBI General Insurance Company Ltd
  28. Shriram Life Insurance Company Ltd
  29. Star Union Dai Ichi Life Insurance Company Ltd

The Finance Ministry has also approved 9 stock entities regulated by the SEBI. They are the following.

  1. Bombay Stock Exchange Ltd
  2. CAMS Investor Services Pvt Ltd
  3. CDSL Ventures Ltd
  4. Central Depository Services (India) Ltd
  5. Computer Age Management Services Pvt Ltd
  6. Link Intime India Pvt Ltd
  7. National Securities Depository Ltd
  8. NSDL Database Management Ltd
  9. NSE Data and Analytics Ltd

Aadhaar data can now be used by these companies in real-time at a much lesser cost and time. The Aadhaar eKYC process could also help to prevent any possible money laundering schemes.

For more information contact us.
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]