RBI allows NBFCs to use e-KYC service to verify identity

Tags: News
Non-Banking Financial Companies (NBFCs) have been allowed to accept e-KYC service as a valid process to verify identity and address proof of customers to reduce risk of fraud and forgery.

"In order to reduce the risk of identity fraud, document forgery and have paperless KYC verification, UIDAI has launched its e-KYC service.

"Accordingly, it has been decided to accept e-KYC service as a valid process for KYC verification under Prevention of Money Laundering (PML) (Maintenance of Records)," the RBI said in notification addressed to NBFCs today.

The RBI said information containing demographic details and photographs made available from UIDAI via e-KYC platform may be treated as an officially valid document under PML Rules.

The apex bank further asked NBFCs to have proper infrastructure in place to enable biometric authentication for e-KYC.

However, the RBI made it clear that physical Aadhaar card or letter issued by UIDAI containing details of name, address and Aadhaar number received through post would continue to be accepted as an officially valid document.

Among other options, the RBI said NBFCs may also accept e-Aadhaar by downloading it from UIDAI website if a customer knows his Aadhaar number.

The RBI said NBFCs may revise their KYC policy after these guidelines and they should ensure strict adherence to same.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Time and tide are ripe for megaplans such as Sagarmala

    To say that India’s infrastructure is in urgent need of upgrade would be to state the obvious.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Taslima Nasreen

No place for the poor anywhere

As we sit in the comfort of our homes reading ...

Purnendu Ghosh

Are you worth remembering?

One of the best inscriptions I have come across in ...

Dharmendra Khandal

Tiger in urban landscape

Ranthambhore is in a no-win situation. Just a few days ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture