UIDAI, NPCI to set up eKYC aggregator, fin entities to gain

New Delhi, April 24, 2023

The Unique Identification Authority of India (UIDAI) and the National Payments Corporation of India (NPCI) are setting up an aggregator platform for eKYC (electronic know-your-customer) as part of a move that will benefit thousands of regulated entities in the financial sector.

The platform is expected to go online over the next few months, sources told TOI. The process of Aadhaar-based eKYC is used for paperless verification of a customer’s credentials to get a mobile connection or open a bank account. The process can be completed using biometrics or through the use ofOTP and is being used by financial services players, mobile operators and government agencies.

The new platform will enable entities that are regulated by the RBI, Sebi or the insurance and pension regulators to register on it.

This will do away with the need for these entities to individually register for undertaking eKYC using Aadhaar, while also ensuring that user data is not shared with the players using the platform. Sources said that the idea is to ensure that at best the last four digits are available to the financial services players and even the masked data of the consumers is not shared. Besides, users will not have to share physical copies of their documents, which often result in misuse and data theft.

Once implemented, the platform is expected to help several non-banking finance companies (NBFCs) reach out to consumers to offer loans apart from aiding fintech players and insurance intermediaries.

“We expect a few thousand players to undertake eKYC through the platform, which will be a significant increase,” said a source.

[The Times of India]