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.

EDITORIAL OF THE DAY

  • Nothing short of a uniform civil code will work in India

    When the Jamiat-Ulama-I-Hind (JUH), a powerful body of muslim clerics dedicated to address the aspirations of the community, turns to quote the religi

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Tushar Gandhi

A democracy must stand up for its people

We are the world’s most populous dem­ocracy, but behave in ...

Purnendu Ghosh

A curious and an innovative mind

Curiosity is hard-wired into our psyche. We all recognise that ...

Shona Adhikari

A good time for European art auctions

This week, we bring you interesting art news and the ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture