Wednesday, October 6, 2021

UIDAI Reduces charges for Aadhaar Online KYC and why it matters


The UIDAI (Unique Identification Authority of India) has recently cut down the charges for Aadhaar authentication. Based on a circular issued by the UIDAI the fee for each instance of Aadhaar based authentication has been reduced from Rs. 20 to Rs. 3.00.

Issued by the UIDAI the Aadhaar is one of the most important of all documents in establishing the identity of an Indian citizen or an Indian resident. Aadhaar authentication can be done in few minutes by making use of the Aadhaar eKYC online services. This is the most reliable and cost-effective solution when it comes to onboarding new clients/customers.

The authorities in this governmental entity have decided to cut down the charges for Aadhaar online KYC as it:

  • Enables financial and other entities to make maximum use of the digital infrastructure
  • Aadhaar online KYC helps in providing the people with several  governmental and other benefits and services effortlessly
  • This in turn helps in easing the lives of people and allows them to live with dignity

So far, over 99 crore Aadhaar online KYC has been carried out using the digital system. Aadhaar authentication is done by both governmental entities and private sectors including:

  • Nationalized banks
  • Private banks
  • Public Distribution System (PDS)
  • NREGA (National Rural Employment Guarantee Act)
  • Telecom service providers

 The UIDAI has also made some changes in its rules recently. Now a person who does not have her/his mobile number linked to the Aadhaar can download their Aadhaar card by logging in to UIDAI's official website.  

 Pricing of Aadhaar Authentication Services

UIDAI has put forth new regulations on the fee charged for Aadhaar authentication services. The pricing for Aadhaar authentication is referred to as the Aadhaar Regulations, 2021 (Number of 2021). According to the UIDAI, the latest charges for services related to Aadhaar authentication are as follows.

  • Rs. 3.00 will be charged for each Aadhaar authentication service. This includes the applicable taxes. (From entities that placed the request)
  • Rs.0.50 (including taxes) for a successful  Aadhaar eKYC online service (From requesting entities)
  • Rs.0.50 for each Yes or No received following authentication(From requesting entities)
  • Rs.0.50 (Including taxes) will be charged for every failed eKYC transaction using Aadhaar  (From the entities that put forth the request)
  • Rs.0.50 will be charged for every failed Yes/No transaction for authentication. (Requesting entities)

Authentication charges will not be applicable in the following situation:

  • Transactions are done on behalf of or by the State and Central government/governmental departments
  • For the transfer of subsidies and governmental benefits
  • For notified services

The charges mentioned above are in addition to financial disincentives and fees for the license. Transaction error code and the related charges will be issued separately and in detail. The service charges for Aadhaar authentication will be revised every 2 years:

  • This includes Yes/No transactions and Aadhaar based eKYC
  • The revision of charges will be done by linking it with the CPI (Consumer Price Index)
  • The revision will be made by rounding it to the closest 10 paisa 

 This positive move related to aadhaar online KYC by the UIDAI will bring about a greater range of inclusivity on this platform. Going forward more people will be encouraged to be a part of the Aadhaar system and get integrated with it.

According to the UIDAI high levels of security and privacy are maintained to protect the personal and biometric information of the Aadhaar holder.  This governmental entity also expects its partners to be cautious enough in protecting the identity of the Aadhaar holder by not sharing their details with anyone.

 For more information contact us.

We, Finahub, are experts in Aadhaar related products and services like eSign, online 
KYC, 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]