Aadhaar-based e-KYC: Govt onboards NBFCs, fintechs

New Delhi, Mar 23, 2023

The government, which has been looking to expand the coverage of Aadhaar to the private sector, has onboarded several small and mid-sized NBFCs and fintech companies that are now using the Aadhaar based e-KYC for onboarding customers.

Using the Aadhaar based e-KYC process enables easy onboarding and authentication of customers by businesses and also brings down the cost of customer acquisition.

“Some 300-400 NBFCs have come forward and this has happened only in the past six to eight months. We hope to look at more such use cases. Services that a person needs are not necessarily only available from the government. There are large number of services which companies operating under the guidelines of RBI, Sebi, IRDA and PFRDA provide. Any private provider helping in the ease of living should be able to use Aadhaar for authentication purposes,” a senior government official said.

The Unique Identification Authority of India (UIDAI) is seeking to add credibility to the Aadhaar ecosystem through upgradation of technology and adding new security features. On an average, over 200 crore Aadhaar-based authentications take place every month.

[The Times of India]