Now Reading: Aadhaar-based identity verification: UIDAI plans simplifying offline Aadhaar for citizen KYC; push for safer, user-friendly process
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Aadhaar-based identity verification: UIDAI plans simplifying offline Aadhaar for citizen KYC; push for safer, user-friendly process
Aadhaar-based identity verification: UIDAI plans simplifying offline Aadhaar for citizen KYC; push for safer, user-friendly process
The Unique Identification Authority of India (UIDAI) is taking steps to bolster the offline Aadhaar-based identity verification process, aiming to make it safer, user-friendly, and broadly adopted throughout monetary and fintech companies, as per two senior bankers.
What is the important thing goal?
The key aims of UIDAI’s newest transfer are to permit Aadhaar-based KYC to be accomplished with out requiring residents to share their Aadhaar quantity or private particulars, thereby enhancing privateness and safety, ET reported.It additionally goals to simplify the offline identity verification process by selling the usage of QR codes and PDF codecs, making it simpler for customers to handle and share their identification paperwork. Additionally, the initiative is targeted on encouraging startups and monetary service suppliers to undertake compliant and controlled verification strategies by integrating with authorised companies.
Why the Change?
The transfer comes amid considerations about unauthorised entry to Aadhaar information. In June, the UIDAI and the Ministry of Electronics and Information Technology (MeitY) blocked a number of startup web sites for allegedly accessing Aadhaar data illegally. These disruptions hit a number of sectors, together with fintech, meals supply, and e-commerce, the place Aadhaar was broadly used for verifying gig staff and blue-collar staff.Many fintech and non-banking lenders confronted onboarding delays as they relied closely on Aadhaar for buyer verification.“There have been multiple rounds of conversations, and UIDAI has made it very clear that consumers will be able to use offline Aadhaar-based KYC without any need to share their Aadhaar number or personal details,” one of many bankers instructed ET.The UIDAI is working to control and streamline the process by means of approved entities like Aadhaar Authentication Agencies and KYC User Agencies.
What’s New?
- UIDAI will promote QR codes and PDFs for offline KYC as a substitute of the present XML-based technique, making it simpler for customers to share and handle paperwork.
- Offline Aadhaar-based KYC will no longer require biometric authentication or OTP, easing entry for customers in distant areas.
- The process should be completed with buyer consent solely.
The UIDAI supplies three KYC choices:
- Electronic KYC (OTP-based): Requires sharing Aadhaar quantity, and is usually utilized by banks and insurers.
- Biometric KYC: Requires in-person verification.
- Offline KYC (XML technique): Users obtain an information file from UIDAI to share with service suppliers.
“The problem was with the offline method, where many startups were providing this verification service through unauthorised means. UIDAI is coming down hard on players who are offering non-compliant offline KYC flows,” the founding father of an identity verification startup mentioned.With UIDAI clarifying norms and simplifying offline verification, extra banks and fintechs are anticipated to undertake it. Identity verification startups are actually trying to combine compliantly by partnering with approved companies, making certain continued service whereas adhering to laws.As the federal government tightens controls and improves usability, offline Aadhaar KYC is more likely to play a much bigger function in digital identity verification throughout India’s increasing monetary ecosystem.
