RBI notifies eKYC as valid

New Delhi: After the law ministry’s clearance, the Reserve Bank of India (RBI) on 2 September notified that the paperless electronic authentication, or electronic know-your-customer (eKYC), process provided by the Unique Identification Authority of India (UIDAI) is “officially valid”.

add_main_imageThis means a customer of a bank that chooses to use eKYC can get her credentials verified without carrying any paper documents by allowing the bank to access her proof of identity, address, email address and mobile number stored with the UIDAI by providing biometrics (fingerprint or iris scan or both).

The customer has to authorise the bank to access her demographic records registered and stored in the UIDAI’s Central Identity Data Repository and the bank will receive the details from it after matching the customer’s biometrics scan with the Aadhaar number provided.NextMAds

Any bank interested in using the facility must use UIDAI-approved biometric scanning devices and register with it to receive access to its data.

The facility is free of charge till the UIDAI announces a pricing policy for its authentication services, expected to be announced in December.

The law ministry decided eKYC is valid under the Information Technology Act for meeting the know-your-customer norms, Business Standard reported in August citing an anonymous government official.

The central bank allowed the use of the Aadhaar enrolment letter as a valid proof of identity and address in December 2012.