Tag Archives: eKYC

UIDAI holds Half Day eKYC Workshop. No additional investment of Aadhaar online authentication.

Read my earlier Post 1 and Post 2 on eKYC here.

To familiarize eKYC process flow amongst Bankers, Insurance Companies, Securities Market and Telecom Sector, UIDAI held a workshop on August 19, 2013.

The workshop was followed by a media brief, and UIDAI Chairman Shri Nandan Nilekani was taking questions from the media personnel, on doubts on eKYC implementation and the legal backing for eKYC.

The highlight of the Media brief was:

“If a certain authority feels that the beneficiaries of a particular scheme need to possess Aadhar cards, they can make it mandatory for them for that particular scheme,” said Nandan Nilekani, Chairman, Unique Identification Authority of India, on Monday here.

The workshop was done to demonstrate the practical implementations and to specify some of the salient features and the benefits of its implementation.

Residents have to authorize UIDAI to release the information available in the CIDR.

Authorization can be done via two channels:

01) In person (through  biometric authentication),

02)Online (through OTP authentication).

Upon successful authentication and consent of the resident, the UIDAI will provide the resident’s name, address, date of birth, gender, photograph, mobile number (if available), and email address (if available) to the service provider electronically.

One of the foremost advantages of Online Authentication is that the latest details of the resident can be viewed by the service provider and stored as proof of KYC being done.

Online authentication also costs less as compared to biometric authentication. No additional investment needs to be done for Online Authentication.

 

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RCOM ready for UIDAIs’ eKYC services

 

The first major customer for UIDAIs’ eKYC identity authentication service is Reliance Communication.

Way back in October 2012, Vodafone had launched a pilot program in Andhra Pradesh using UIDAIs’ eKYC identity authentication service. However, there has been no further news on this front.

Reliance Communication has already tested this eKYC Service in a non company multi brand small retail outlet. It is now waiting for DOT (Department of Telecom) guidelines on the eKYC norms.

The envisaged process flow is as under:

01) Prospective customer walks into the RCOM Showroom/vendor, with his/her Aadhaar Card.

02)                An eKYC request, along with Aadhaar number and authentication is sent as an input and the name, address, date of birth, gender, and photograph, is received by the RCOM Retailer

03)                Once authenticated, the mobile connection will immediately activated by RCOM.

 

The present process for Mobile connections-KYC is that the customers had to submit a photocopy of customers KYC documents and photo to purchase a SIM card.

Retailers then had to submit the documents to the company and the SIM would get activated after the company verified the documents.

Aadhaar authentication makes the entire process swift and paperless.  The adoption of eKYC largely depends on the IT infrastructure. It may be noted, that the same IT infrastructure can be utilized by multiple service providers and duplication can be avoided.

Aadhaar eKYC finally goes online

ekyc            eKYC  (electronic Know Your Customer) services was one of the UIDAIs’ pet ideas. Over the last 6 months, there has been extensive testing of the end-to-end channel, to ensure minimal glitches in the commercial launch.

Today, the UIDAIs’ eKYC was formally opened for commercial usage.

The core idea of the eKYC Aadhaar service is to enable individuals to authorise service providers to receive electronic copy of their proof of identity and address.  The eKYC service can be deployed by different agencies to verify a resident’s identity and address.

Only demographic information (Name, Address, Date of Birth, Gender, Photograph & Mobile Number) that is collected during Aadhaar enrolment will be shared, at the request of, and/or with the consent of the Aadhaar number holder.

However the information will be available only for few seconds to the service provider to avoid any misuse.

The service providers have to set up the required IT Infrastructure to establish linkage with the core Aadhaar server. As of now with 35 crs Aadhaar numbers already issued, sufficient safeguards have been built in to ensure that the accessed data is not abused. However, more safeguards will be introduced as and when any abuse is noticed. And, we Indians are famous for working round the system.

The eKYC service stipulates that the data will be shared at the request of, and/or with the consent of the Aadhaar number holder.

Digitally signed electronic KYC data provided by UIDAI is machine readable, making it possible for the service provider to directly store it as the customer record in their database for purposes of service, audit, etc. without human intervention making the process low cost and error free.

The Aadhaar e-KYC API returns data along with a unique transaction code. The fact that the data is digitally signed by UIDAI and that every transaction has a unique code makes it possible to perform an electronic audit at a later point in time for any particular transaction. Ideally, the Unique Transaction Code should be part of the Service Provider’s database, for easy grievance resolution.

Like all new products, initially this service is offered by UIDAI free of cost.

 

RBI Working Group Report – Gold Imports and Gold Loan NBFCs in India. Golden chance for Immediate Payment Service and eKYC.

 

On 06/02/2013, Reserve Bank India placed on its website the final report of the Working Group to Study the Issues Related to Gold Imports and Gold Loan NBFCs (non-banking finance companies) in India.

As a Safe ePayments motivator, the following two points of the report are of interest to me

 

01) Use of PAN Card for large gold loan transactions is advised;

02)Payment through cheque for large gold loan transactions may be tried;

01) Use of PAN Card:-If the main objective of the PAN Card, is as an Identity document and to be used at a later stage to monitor purchasers of huge amount of Gold, ‘Aadhaar’s eKYC’ is a better option.  There are chances that a PAN Card of the actual purchaser will not be mentioned in the purchase bill. In such cases, the PAN Card holder whose number is mentioned on the Purchase Bill, will unnecessarily be investigated by the Tax authorities or other related authorities.  ‘Aadhaar eKYC’, is comparatively a fool-proof alternative.  Of course, NBFC’s have to invest in the Biometric authentication machines.

02)Payment through cheque for large gold loan transactions may be tried: NEFT/RTGS is the better alternate. Of course, there will be issues like net connectivity in rural areas. But, in urban and Semi-Urban, I see no reason for cheques to be part of large gold loan disbursements.  Another alternate, which is 365 days a year, 24*7, is the Immediate Payment Service (IMPS) M2A mode.

Comments welcome!!