A new aggregator platform for doing e-KYC is in works to benefit thousands of entities regulated by SEBI and RBI. The new online platform is being developed by UIDAI (Unique Identification Authority of India) and NPCI (National Payments Authority of India).
The platform is expected to go online in the next few months, said a report on TOI. It will enable entities regulated by RBI, SEBI, IRDAI and pension regulators to register on it. This means that entities need not register individually for undertaking e-KYC using Aadhaar, while making sure that data of users are shared with any of these entities.
Adding to that, users need not share physical documents of their Aadhaar which gets lost or stolen in most cases. According to the publication, the whole idea behind the new aggregator is to make only the last four digits visible to the financial services entities, while making sure that mask data of customers are not shared.
Once the platform goes online, several Non-Banking Finance Companies (NBFCs) registered on the platform will be able to reach out to customers to offer loans and at the same time help fintechs and insurance intermediaries.
The publication also added that it expects a few thousand players to take the e-KYC process through the online aggregator which is a massive increase.
Back in March this year it was reported by TOI that the government had onboarded several small and mid-sized NBFCs and fintech companies that are using the Aadhaar based e-KYC for onboarding customers. It added that around 300-400 NBFCs have been onboarded in the last six to eight months.
An Aadhaar based e-KYC is used for verification of a customer’s credentials for new mobile connections and bank accounts without using physical documents.