The Unique Identification Authority of India (UIDAI) and the National Payments Corporation of India (NPCI) are collaborating to set up an aggregator platform for e-KYC (electronic know-your-customer), which is expected to go online over the next few months and benefit thousands of regulated fintech companies.
What Happened? Per a Times of India report, entities regulated by the RBI, SEBI, insurance, and pension regulators can register on this platform. The move will eliminate the need for individual registration for undertaking e-KYC using Aadhaar while ensuring that user data is not shared with the players using the platform.
Sources close to TOI add that the platform is expected to help several non-banking finance companies (NBFCs) to reach out to consumers to offer loans apart from aiding fintech players and insurance intermediaries. This platform will enable a few thousand players to undertake eKYC, which will be a significant increase.
The Aadhaar-based eKYC is used for paperless verification of a customer’s credentials for new mobile connections and bank accounts. Once implemented, users will not have to share physical copies of their documents, which often results in misuse and data theft.
Between October and December last year, more than 84.8 crore e-KYC transactions were executed using Aadhaar, 18.53% higher compared to the previous 3 months.
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