by FP Staff Mar 18, 2016 18:16 IST
With the crucial Aadhaar Bill being passed in the Lok Sabha earlier this week, an international consulting firm in its survey today said that banks and telecom operators can potentially save an estimated Rs 10,000 crore over the next five years by using Aadhaar enabled e-KYC process for customer acquisition.
Besides substantial cost savings for banks and financial institutions by opening bank accounts and registering new customers, Aadhaar enabled e-KYC is significantly more efficient compared to current paper-based KYC, said MicroSave, a development consulting firm, in its survey.
"If e-KYC is adopted for customer on-boarding by banks (for savings bank account opened through branches and alternate channels) and by MNOs (for pre-paid mobility), an estimated Rs 10,000 crore can be saved over the next five years (by 2021)," the study said.
Customer enrolment processes followed by banks also take longer time and it can be two to four weeks before an account is activated. Whereas Aadhaar e-KYC enabled bank accounts can be activated and ready to transact in a few minutes.