Imprisonment upto 3 years and fines up to 10 lakhs rupees for storing Aadhaar numbers in clear text

 

 

Now a days the most used identity / address proof document by enterprises is the Aadhaar identity proof of the customer. Banks, NBFC, Stoke Brokers, Insurance Companies, Nidhi Companies etc prefer to use Aadhaar as identity proof as almost every Indian has an Aadhaar card and customers are willing to share their Aadhaar numbers when they want to avail any service of the enterprise. Using Aadhaar as KYC document has many advantage such as easy digital access of the data, fast customer on boarding, lower cost for KYC process.

Aadhaar Face Authentication for Mobile Based Customer Onboarding

 Aadhaar eKYC  using OTP authentication and fingerprint authentication has revolutionized KYC process for Banks, Insurance companies and other such regulated entities. Aadhaar eKYC process reduces the KYC data collection time to a matter of seconds. Apart from making the the process faster the entire data is collected digitally, thus doing away with paper work required for the traditional KYC process.

It also enabled these organisations to onboard customers using their mobile apps. Using OTP based based authentication customers do a minimum KYC and open a bank account. Such accounts has an account balance limit of Rs 1 lakh and validity period of one year. Customers are required to do a full KYC by visiting the branch and upgrading to a full KYC account.

Face authentication based KYC removes this limitation. Customer will be able to open fully KYC account using the banks mobile app without visiting the branch. Face authentication based KYC process matches live photo of the user with the photo available at UIDAI. This enables AUA/ KUA's to use biometric authentication (face auth) with out the need of any additional hardware other than a mobile phone. As of now this feature works only on Andriod OS mobile phones only.

NBFCs can be come SUB KUA's to get Aadhaar eKYC Service

Cost effective Aadhaar eKYC Solution for NBFCs

Aadhaar eKYC  service is a cost effective, fast and convenient way to collect the KYC details of the customer.  NBFCs were not able to use this service due to the changes in the Aadhaar regulation but that has changed in recently. Last year there was a news from RBI that allows NBFCs to use Aadhaar EKYC service. A new circular with number RBI/2021-22/98 DOR.AML.REC 48/14.01.001/2021-22 was issued on 13th September 2021 inviting application for Aadhaar EKYC license.  With this notification RBI allows NBFCs to register as KUAs (KYC user Agency) or Sub KUAs to avail Aadhaar eKYC service.

Existing KUA's have started offering Sub-KUA services to NBFC approved by RBI for Aadhaar EKYC license. If your NBFC is interested in becoming a Sub-KUA, please contact us, we will guide you through the process.