Wednesday, July 27, 2022

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.
Using Aadhaar eKYC by registering as Sub-KUA is very cost effective process as most of the technology requirements for using Aadhaar eKYC is taken care off by the KUA. Sub-KUAs are not required to provide bank guarantees or use capital intensive technologies such as HSMs that are needed for a full KUA service implementation. So Sub-KUA registration is ideal for small and medium NBFCs that want to reduce their capex but are looking to grow their business.

KUA's have developed the Webservice for authorized entities (referred to as Sub-KUA) to avail the e-KYC services from KUA hosted portal. As per UIDAI guidelines, Aadhaar will be entered on the portal of KUA by respective Sub-AUA. Sub-KUA will re-direct the user to KUA portal for entering the Aadhaar and do OTP / Biometric  based e-KYC transactions.  By obtaining the consent from Aadhaar holder OTP / Biometric based e-KYC will be done. 

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]