Non-Bank Entities Can Authenticate Aadhaar e-KYC But They Will Need This RBI License
The Reserve Bank of India in an announcement on Monday, has invited NBFCs (Non-Banking Financial Companies), payment system providers and payment system participants to submit applications for obtaining Aadhaar e-KYC authentication licence.
As per the Prevention of Money Laundering Act (PMLA), 2002, the government may allow entities other than banking institutions to authenticate a client’s Aadhaar number using the e-KYC facility provided by the Unique Identification Authority of India (UIDAI).
However, for this to happen, the said notification can only be issued after the UIDAI consults the appropriate regulator, stated RBI.
“Accordingly, non-banking finance companies (NBFCs), payment system providers and payment system participants desirous of obtaining Aadhaar Authentication License – KYC User Agency (KUA) License or sub-KUA License (to perform authentication through a KUA), issued by the UIDAI, may submit their application to this Department for onward submission to UIDAI”, explains the RBI.
The Department of Revenue, Ministry of Finance has provided a detailed procedure for processing of applications under the aforementioned section of the PMLA 2002, for permitting the use of Aadhaar authentication services by entities other than banking companies, on May 9, 2019.
The RBI stated that NBFCs, payment system providers and payment system participants can also send their applications for eKYC Aadhaar authentication through email, as the format for the same has been provided on the central bank’s website.