Thursday, April 27, 2023

Fin entities will benefit from UIDAI and NPCI's creation of an eKYC aggregator

UIDAI and NPCI are setting up an aggregator stage for eKYC (electronic know-your-client) as a component of a move that will help large number of managed substances in the monetary area.

There are reports that the platform will probably go live in the next few months. The course of Aadhaar-based eKYC is utilized for paperless confirmation of a client's certifications to get a versatile association or open a financial balance. Financial service providers, mobile operators, and government agencies are making use of the process, which can be completed using biometrics or OTP.

Companies that are regulated by the RBI, Sebi, or the insurance and pension regulators will be able to register on the new platform.

This will ensure that user data is not shared with players using the platform and that these entities will not have to individually register for eKYC using Aadhaar. According to sources, the goal is to ensure that financial service providers only have access to the last four digits and that customers' masked data is not shared. In addition, users will not be required to share physical copies of their documents, which frequently lead to data theft and misuse.

In addition to assisting fintech players and insurance intermediaries, the platform is anticipated to assist several non-banking finance companies (NBFCs) in reaching out to consumers to offer loans once it is implemented.

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