In 2009, I became extremely concerned with the concept of Unique Identity for various reasons. Connected with many like minded highly educated people who were all concerned.
On 18th May 2010, I started this Blog to capture anything and everything I came across on the topic. This blog with its million hits is a testament to my concerns about loss of privacy and fear of the ID being misused and possible Criminal activities it could lead to.
In 2017 the Supreme Court of India gave its verdict after one of the longest hearings on any issue. I did my bit and appealed to the Supreme Court Judges too through an On Line Petition.
In 2019 the Aadhaar Legislation has been revised and passed by the two houses of the Parliament of India making it Legal. I am no Legal Eagle so my Opinion carries no weight except with people opposed to the very concept.
In 2019, this Blog now just captures on a Daily Basis list of Articles Published on anything to do with Aadhaar as obtained from Daily Google Searches and nothing more. Cannot burn the midnight candle any longer.
"In Matters of Conscience, the Law of Majority has no place"- Mahatma Gandhi
Ram Krishnaswamy
Sydney, Australia.

Aadhaar

The UIDAI has taken two successive governments in India and the entire world for a ride. It identifies nothing. It is not unique. The entire UID data has never been verified and audited. The UID cannot be used for governance, financial databases or anything. It’s use is the biggest threat to national security since independence. – Anupam Saraph 2018

When I opposed Aadhaar in 2010 , I was called a BJP stooge. In 2016 I am still opposing Aadhaar for the same reasons and I am told I am a Congress die hard. No one wants to see why I oppose Aadhaar as it is too difficult. Plus Aadhaar is FREE so why not get one ? Ram Krishnaswamy

First they ignore you, then they laugh at you, then they fight you, then you win.-Mahatma Gandhi

In matters of conscience, the law of the majority has no place.Mahatma Gandhi

“The invasion of privacy is of no consequence because privacy is not a fundamental right and has no meaning under Article 21. The right to privacy is not a guaranteed under the constitution, because privacy is not a fundamental right.” Article 21 of the Indian constitution refers to the right to life and liberty -Attorney General Mukul Rohatgi

“There is merit in the complaints. You are unwittingly allowing snooping, harassment and commercial exploitation. The information about an individual obtained by the UIDAI while issuing an Aadhaar card shall not be used for any other purpose, save as above, except as may be directed by a court for the purpose of criminal investigation.”-A three judge bench headed by Justice J Chelameswar said in an interim order.

Legal scholar Usha Ramanathan describes UID as an inverse of sunshine laws like the Right to Information. While the RTI makes the state transparent to the citizen, the UID does the inverse: it makes the citizen transparent to the state, she says.

Good idea gone bad
I have written earlier that UID/Aadhaar was a poorly designed, unreliable and expensive solution to the really good idea of providing national identification for over a billion Indians. My petition contends that UID in its current form violates the right to privacy of a citizen, guaranteed under Article 21 of the Constitution. This is because sensitive biometric and demographic information of citizens are with enrolment agencies, registrars and sub-registrars who have no legal liability for any misuse of this data. This petition has opened up the larger discussion on privacy rights for Indians. The current Article 21 interpretation by the Supreme Court was done decades ago, before the advent of internet and today’s technology and all the new privacy challenges that have arisen as a consequence.

Rajeev Chandrasekhar, MP Rajya Sabha

“What is Aadhaar? There is enormous confusion. That Aadhaar will identify people who are entitled for subsidy. No. Aadhaar doesn’t determine who is eligible and who isn’t,” Jairam Ramesh

But Aadhaar has been mythologised during the previous government by its creators into some technology super force that will transform governance in a miraculous manner. I even read an article recently that compared Aadhaar to some revolution and quoted a 1930s historian, Will Durant.Rajeev Chandrasekhar, Rajya Sabha MP

“I know you will say that it is not mandatory. But, it is compulsorily mandatorily voluntary,” Jairam Ramesh, Rajya Saba April 2017.

August 24, 2017: The nine-judge Constitution Bench rules that right to privacy is “intrinsic to life and liberty”and is inherently protected under the various fundamental freedoms enshrined under Part III of the Indian Constitution

"Never doubt that a small group of thoughtful, committed citizens can change the World; indeed it's the only thing that ever has"

“Arguing that you don’t care about the right to privacy because you have nothing to hide is no different than saying you don’t care about free speech because you have nothing to say.” -Edward Snowden

In the Supreme Court, Meenakshi Arora, one of the senior counsel in the case, compared it to living under a general, perpetual, nation-wide criminal warrant.

Had never thought of it that way, but living in the Aadhaar universe is like living in a prison. All of us are treated like criminals with barely any rights or recourse and gatekeepers have absolute power on you and your life.

Announcing the launch of the # BreakAadhaarChainscampaign, culminating with events in multiple cities on 12th Jan. This is the last opportunity to make your voice heard before the Supreme Court hearings start on 17th Jan 2018. In collaboration with @no2uidand@rozi_roti.

UIDAI's security seems to be founded on four time tested pillars of security idiocy

1) Denial

2) Issue fiats and point finger

3) Shoot messenger

4) Bury head in sand.

God Save India

Showing posts with label e-KYC. Show all posts
Showing posts with label e-KYC. Show all posts

Sunday, June 12, 2016

10127 - Filing fresh KYC forms irks LPG consumers - TNN


TNN | Jun 11, 2016, 06.35 AM IST

Nashik: LPG companies have started sending messages to their consumers asking them to submit fresh know your client (KYC) forms to the distributors for getting subsidy, which has enraged the citizens. They have expressed anger over "repeating the exercise for no specific reason".

"Such messages from petroleum companies are doing the rounds. Why should we do the same exercise which has already been done? There is no update and I still have not got my Aadhaar number. Why is it compulsory for me to issue fresh KYC?" questioned Anand Parmar, a resident of Pathardi Phata.

Sources in the companies said even as the Supreme Court order still stands, they are trying to get their data updated at the same time.

"Going by statistics, only 4% of the population in Nashik district does not have Aadhaar numbers. During the last six months, there has been very little or negligible update about Aadhaar numbers. The consumers have started presenting their numbers to the distributors as well as banks. This clearly shows that the consumers were not doing so on their own. However, those who still not have got Aadhaar numbers will not be deprived of their subsidies if they renew their KYC forms. It is not a tedious job," said an official.

District supply officer Sarita Narke, however, said she was not authorised to stop or expedite the process. Narke said she has no idea about how many LPG consumers have complied with the Aadhaar number norm. "Since we have no role - supervising or monitoring - in the system, we are not aware of the issue. But we will look into it to ensure that the citizens do not suffer," the officer added.

Thursday, April 14, 2016

9805 - 'Aadhaar eKYC Can Make New Mobile Connection Cost Zero' - NDTV


Press Trust of India , 9 April 2016

Trai Chairman R S Sharma Friday said cost of activation of a new mobile connection can virtually come down to zero if electronic KYC of Aadhaar is implemented as authentication will be done digitally.
He said transaction costs are reduced substantially when Aadhaar is used as an authentication tool.
"If you are taking a mobile connection, currently the cost of activation of a mobile customer is Rs 150 because you have to fill a customer acquisition form (CAF), you have to give paper documents... if you use digital identity authentication, you can fill the customer form, digitally sign it and get your electronic KYC. So, essentially the cost is equal to zero," Sharma said at the annual growth Net summit in New Delhi.
Sharma has made recommendations to the Department of Telecom (DoT) to this effect and the latter has "apparently" accepted it.
After the government finalises the norms, it will enable instant identity verification using Aadhaar card bio-metric data for a new mobile connection.
When operators issue new connections using the Aadhaar card, it would speed up the verification process as everything will be done online, Sharma hoped.
He, however, pointed to the big gap between technology development and its implementation.
Sharma as the UIDAI Director General and then as Department of Electronics and IT (Deity) Secretary had earlier recommended to DoT on making the whole process paperless.
This, however, met with scepticism in some quarters on security issues.
"Now, what is happening is one person who takes your PAN card is able to give 20 SIMs to different people and if they commit a crime, you will be caught. You are not aware who is using or misusing your PAN card to get the SIMs," Sharma explained.
Citing the example of Peshawar attack in Pakistan which killed many children, the Trai chairman said there were six terrorists who had SIMs that were issued to a woman.
"Pakistan decided to authenticate all the SIMs with biometrics and they had completed the programme last year," he added.

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Sunday, March 6, 2016

9390 - Birla Sun Life Mutual Fund introduces 100% paperless, Aadhaar-based eKYC - TNN


M Allirajan | TNN | Feb 25, 2016, 07.45 PM IST

COIMBATORE: Birla Sun Life Asset Management Company (BSLAMC) has announced the launch of a 100% paperless, Aadhaar based eKYC (know your customer) facility. 

First-time investors to mutual funds (MFs) can now complete their 'eKYC' formality using their Aadhaar number. Using the one time password (OTP)-based method of recording customers consent for using Aadhaar data, this 100% paperless process is completed with data received from UIDAI (Unique Identification Authority of India). 

The three-step Aadhaar-based eKYC from Birla Sun Life MF allows user to transact instantaneously, upon completion of eKYC process. "This not only simplifies the process and reduces processing time drastically, but also provides great convenience to new investors across geographies who can now be KYC compliant from the comfort of their locations," BSLAMC said. 


"With eKYC, Aadhaar-based eKYC or our mobile app BSLMF FinGo, we are building a suite of options and utilities for investors to use, and engage with us with greater convenience," said A Balasubramanian, Chief Executive Officer, BSLAMC.




"All our efforts of putting technological enablers in place go towards serving the investor, simplifying the experience with mutual funds - be it search for information, transacting, or seeking service support," he stated. 

"Retail interest in mutual funds, as well as contribution from B15 (beyond top-15 cities) markets is on the rise," Balasubramanian said. "Distributors can use our tools to harness this growth from interior pockets across the nation to grow their business, and the industry's customer base," he said.




Regulation mandates that users with Aadhaar-based eKYC, using the OTP-based method, can invest up to Rs 50,000 per annum, per fund house. Investors who wish to invest beyond this limit can do so after enhanced KYC verification.


Tuesday, February 9, 2016

9313 - CAMS launches Aadhaar-based eKYC for setting up MF account instantly - TNN


M Allirajan | TNN | Feb 4, 2016, 02.32 PM IST

COIMBATORE: CAMS, the leading services solutions provider for fund houses, has launched Aadhaar-based eKYC (know your customer) using OTP (one-time password) authentication to make mutual fund (MF) account opening and transactions a paperless and presence less process through myCAMS at www.camsonline.com . 

CAMS, the transfer agency for most MFs, is also in the process of integrating the websites of AMCs (asset management companies) with eKYC module where it is the registrar. 

This is in line with market regulator SEBI's vision to ease the KYC process and facilitate MF online account opening and transactions, CAMS said. 

SEBI has recently enabled Aadhaar based e-KYC service offered by UIDAI (Unique Identification Authority of India) for KYC verification on authorisation by the client using biometric or OTP (one-time password) authentication on a voluntary basis. 

Investors, who wish to use their Aadhaar number and PAN for KYC compliance, can now complete KYC process in just three simple steps using Aadhaar-based eKYC and set up a MF account instantly without having to submit forms, documents and do in-person verification (IPV) either physically or virtually. 

Investors can voluntarily submit Aadhaar and mobile numbers for validation with Aadhaar/UIDAI database. On successful authentication through OTP, investors can complete KYC and start investing in MFs through myCAMS at www.camsonline.com. 

SEBI currently permits investment of Rs 50,000 in a financial year per MF for investors using Aadhaar-based eKYC using OTP based authentication.

KYC completion, a mandatory requirement for investing in MFs, hitherto involved submission of paper forms, ID and address and proofs and IPV. A few MFs launched acceptance of Aadhaar as ID and address proof followed by video-based IPV for authentication and verification purpose.

"In its continued pursuit to use technology to elevate service experience, CAMS has introduced Aadhaar- based eKYC with instant mutual fund transaction facility for the first time to bring a transformational change to the investor on-boarding experience," CAMS stated. 

"Embracing eKYC, online account opening and online payment brings simplicity and speed and will have far reaching benefits to make mutual funds an accessible investment category," said N K Prasad, president and CEO, CAMS.

"Mutual fund penetration with citizens, especially in tier-2 and tier-3 towns can be accelerated with Aadhaar-based eKYC. Younger generation who prefer digital experience can start investing with a complete digital solution for instant account opening," he said.



Wednesday, February 3, 2016

9278 - E-KYC made easier using Aadhaar - Business Standard

For equity investors, there will be an additional requirement of a PAN card and a cancelled cheque
Priya Nair  |  Mumbai 
January 20, 2016 

Financial transactions — opening a bank account, investing in a mutual fund or even applying for a personal loan - would require the investor or borrower to go through a tight Know Your Customer (KYC) procedure. The process takes anywhere between two and 30 days to be completed.

With the Unique Identification Authority of India (UIDAI) allowing authorised entities to access its database, things have become simpler for investors, policyholders and borrowers who wish to transact by using their Aadhaar card.

Motilal Oswal recently launched the completely paperless, e-KYC instant trading and demat account facility, becoming the first brokerage to do so in India. Customers who have an Aadhaar card can now open a trading and demat account completely online without any physical documentation in 15 minutes and start investing immediately.

“Once the customer gives basic details including Aadhaar number, we send a request to UIDAI. The client, then, gets a one-time password (OTP) on their UIDAI-registered mobile number and email ID. Once the client enters the OTP in our system, we access the required details (personal and address) from the UIDAI database,’’ says Arun Chaudhry, head (online and direct retail channel) at Motilal Oswal Securities.

But, how does one transact? In case of an equity account, the customer has to upload copies of PAN and a cancelled cheque. If it is an futures and options account, he has to upload a copy of an income tax return as well.

Bankbazaar.com, the online market place for banking and financial products, too, is planning to offer the Aadhaar eKYC system, says Adhil Shetty, chief executive officer. “Now that the government has opened up the UIDAI data base, authorised entities like us can use that to validate proof of identity of our customers and use it as a substitute for paper documentation. We need not collect documents from customers who apply for loans, etc through our website.”

Today, customers have to give documents for proof of identity, address and date of birth while applying for a loan or credit card on Bankbazaar’s website. But, once e-KYC is rolled out, the process will become completely paperless.


Some banks offer e-KYC. In such cases, Bankbazaar will be able to forward the application without any documents. If not, customers may still have to show documents to the bank. For instance, Axis Bank offers e-KYC. So, if you walk into a branch or kiosk of the bank, you can open an account using only your Aadhaar number, without any other paperwork. Using your Aadhaar number bank can access your proof of identity and residence from the UIDAI database, says a spokesperson from the bank. Once your account is opened, applying for a loan or purchasing any other investment product from the bank can be done easily. “Regulators are pushing for the Aadhaar e-KYC system. Once that happens, more banks will offer e-KYC,” says Shetty.

Sunday, July 19, 2015

8250 - Micro-payments cos offer Aadhaar-backed e-KYC - TNN

Partha Sinha, TNN | Jul 8, 2015, 01.18AM IST

MUMBAI: Two small tech-driven micro-payments firms have managed to overcome a major technology challenge: issuance of e-KYC (know your customer) in the banking space, which has the potential to give a big fillip to Prime Minister Narendra Modi's Digital India initiative. 

Suvidhaa, along with Axis Bank, one of the private banking majors, has started issuing KYC for its prepaid customers using on-site Aadhaar-based biometric verification that does not require submission of any physical document and could be completed within minutes. Gurgaon-based Oxigen, too, has successfully tested its e-KYC compliance process and is using it. Digital India project, for which the Cabinet had approved Rs 1 lakh crore, is one of Modi's most ambitious initiatives to integrate the government with the people through use of technology. Under the Digital India project, the PM wants to create a nationwide digital infrastructure and deliver services digitally to citizens by reducing paperwork. 

In the banking and financial services and telecom sectors, KYC authentication is a must but, at the same time, prone to duplication and frauds. If the e-KYC process is embraced by these industries, it can bring down the cost of compliance substantially and also reduce frauds to a large extent, industry players said. 

For example, between 2007 and 2012, telecom sector regulator TRAI had found around 19 lakh fake mobile connections, some of which were used by terrorists to trigger blasts. TRAI penalized several telecom firms and, in the process, collected a staggering Rs 2,800 crore. In the past few years, banking regulator RBI too has slapped fines on several banks for non-compliance of KYC. 

"Usually, such frauds are successful because papers used for KYC compliance could easily be duplicated and used for KYC compliance for more than one person," said Paresh Rajde, founder, Suvidhaa, a company that is a leader in facilitating remittances within India. Rajde pointed out that Aadhaar-based e-KYC can stop any chance of duplication during the KYC compliance process and block frauds in these two sectors. It can also eliminate paperwork and connect people and the services sector, serving the two main objectives of the Digital India plan. 

As of now, according to UIDAI, the government's nodal body for Aadhaar, only five institutions — RBI, IRDA, department of revenue, Sebi and PFRDA — have notified Aadhaar-based e-KYC. In its last board meeting a week ago, Sebi insisted on greater use of e-KYC by its regulated entities.According to Jairam Sridharan, president, retail lending & payments, Axis Bank, the main objective of the Axis Bank-Suvidhaa e-KYC initiative was to create a mechanism for financial inclusion in pockets of migrant workers. 

Under the pilot scheme, customers with e-KYC can use prepaid cards while, going forward, the endeavour is to include all other banking transactions. 




Friday, March 27, 2015

7595 - Vodafone successfully partners Government of India initiative of instant, secure and green e-KYC solution in Kolkata - Telecom Tiger



TT Correspondent |  |  17 Mar 2015


Vodafone India has announced that it has become the first operator in Kolkata to pilot launch the Aadhaar based e-KYC solution. e-KYC solution is an instant, secure and green mobile subscriber verification project, where a customer’s Aadhaar card and fingerprints is adequate for both validating and activating new prepaid and post-paid connections.

This paperless activation process as per Department of Telecom (DoT)’s directive has the following five simple steps:-

1. Customer brings his Aadhaar card to the Vodafone Store and provides fingerprints to get a new mobile connection.
2. Basis the details in the Aadhaar card, e-KYC data of customer would be downloaded from UIDAI server.
3. After positive authentication is done, the retailer receives the soft copy (PDF) of the e-CAF(Customer Application Form) for customer acknowledgement.
4. Customer checks the e-CAF and acknowledges through Biometric authentication.
5. Post customer acknowledgement, activation request is sent by operator POS (Point of Sale).

The advantage of the e-KYC solution is manifold with all stakeholders – customers, operators and regulators benefitting from it. For the consumer instant activation means a better experience and security of his personal confidential information. For Vodafone it substantially reduces the cost per activation, improved quality of sales as well as regulatory compliance. For the regulator it not only means a green initiative but also hassle free governance and accurate audit results.

"The Department of Telecommunications has chosen Vodafone India to lead the way for launching an instant, safe and secure e-KYC authentication service in Kolkata. We are happy to partner the government in this efficient use of technology for the benefit of the customers and are extending all possible help to make this roll out a success,” said P Balaji, Director, Regulatory and External Affairs, Vodafone India.

“Vodafone India has always been at the forefront of technological innovation and adoption in the telecom industry and it is always our endeavour to work as per government set goals and to find innovative ways and means to provide a quality experience to our valued customers. We are first off the block to launch the pilot of the e-KYC solution for our customers in Kolkata which will ensure that they can now ‘Walk out Talking’ from any Vodafone Store within minutes. We will work with Department of Telecommunications to make this pilot project a success,” said Anand Sahai -Business Head, Kolkata and West Bengal.

This service is available across 21 Vodafone Stores in Kolkata and gradually will be expanded to Vodafone Mini Stores also.

Thursday, March 19, 2015

7540 - Vodafone starts Aadhaar-based verification pilot in Kolkata - First Post

Mar 13, 2015 16:09 IST

New Delhi: Vodafone India today launched a pilot project on Aadhaar-based instant verification of subscribers seeking new mobile connection in Kolkata.

The e-KYC solution is an instant, secure and green mobile subscriber verification project, where a customer's Aadhaar card and finger prints are adequate for both validating and activating new pre-paid and post-paid connections, the company said in a statement.

Vodafone has launched the project in association with the Department of Telecom.

"The Department of Telecom has chosen Vodafone India to lead the way for launching an instant, safe and secure e-KYC authentication service in Kolkata.

"We are happy to partner the government in this efficient use of technology for the benefit of the customers and are extending all possible help to make this roll-out a success," Vodafone India Director for Regulatory and External Affairs P Balaji said.

This service is available across 21 Vodafone stores in Kolkata and gradually will be expanded to Vodafone Mini stores also, the statement said.

"We are first off the block to launch the pilot of the e-KYC solution for our customers in Kolkata which will ensure that they can now 'Walk out Talking' from any Vodafone store within minutes," Vodafone India Business Head (Kolkata) Anand Sahai said.

PTI


Sunday, November 30, 2014

6993 - Monster.com ties up with CSC to launch an eKYC-based job portal - Medianama


Monster.com has tied up with CSC eGovernance Services India Ltd, a governance portal by the Department of Information and

Technology, to launch a new e-KYC based job portal for rural India.

Through this portal, Village level entrepreneurs (VLEs) can help job seekers who have an Aadhaar number upload their resume and access the services of the Common Services Centres (CSC) for jobs. The website can be accessed at csc.rozgarduniya.com.
From an initial look, the website seems to be active only for job seekers in Uttar Pradesh at the moment. It currently offers jobs for professionals, technicians, clerks, agricultural & fishery workers, craft workers and plant & machine operators among others.


The site suggests that the job portal will have a brick and mortar presence across all states and 1,26,000 CSC villages through Common Service Centres (CSCs) managed by CSC eGovernance Services India. Monster.com will be providing its technology expertise to the site.

Rozgar Duniya: Note that this isn’t the first time Monster.com has provided technology support for rural job portals in India. Earlier in 2009, it had partnered with ITC to create RozgarDuniya using the e-chaupals kiosk network.

What’s however different in the current iteration is that it is looking at village level entrepreneurs to take a more active role in fielding candidates and resumes. VLEs now can earn commissions ranging from Rs 16 to Rs 118 for various tasks such as registrations, uploading of CVs, verification of documents, ensuring that the candidate has an Aadhaar card, and getting job seekers to subscribe to receive job SMS job alerts among others.

The new website however does not provide support to Indic languages and is available only in English at the moment. We feel this might put off job seekers considering they are catering to the rural market. In comparison, The Rozgar Duniya website was in Hindi & English. It offered jobs across various categories such as textiles and weaving, teaching, mechanic and auto repair, data entry and industrial jobs such as motor binding, steel fabrication, glass blowing, khallasi and administration jobs. More on that here.



Friday, February 28, 2014

5236 - Axis launches Aadhaar-based eKYC facility for rural banking - Economic Times


PTI Feb 26, 2014, 04.32PM IST

MUMBAI: Axis Bank today said it has started an eKYC (know your customer) facility for account openings by business correspondents in rural areas, and aims to open 1 lakh such accounts over the next three months to drive its financial inclusion programme.

The facility, which uses the Aadhar database, will enable a bank account to be opened within 24 hours as against the 7-15 days taken in villages at present, said a senior bank official.

"We will be opening 1 lakh such accounts in the next three months," retail banking president Rajiv Anand told a news agency here.

He said a soft launch of the facility took place in the Adilabad district of Andhra on February 20 and the bank, which was also the first to launch the eKYC facility at its branches, will now ramp it up in other parts of the state initially and then in other states.

There is no change in the equipment and infrastructure which the BC carries, he said, adding the same handheld Micro- ATM machine will be used to collect a customer's fingerprints.
"All you need to open an account is the Aadhar number and the fingerprints. At the back-end, with the help of NPCI, our servers will verify the details with the Aadhar database and the account will be opened," he said.

Anand said potential benefits of the facility are immense as this will empower the customer to get associated benefits like transfers under the direct benefit transfer (DBT) directly.
The bank will initially be targeting beneficiaries of DBT and pensioners for the account openings, he said. The bank said 52 per cent of its 2,300 branches are in semi-urban, rural and unbanked areas at present.

Saturday, October 19, 2013

4856 - e-KYC set to benefit banking, financial services sectors - Business Standard

Neelasri Barman & M Saraswathy  |  Mumbai  October 18, 2013 Last Updated at 00:41 IST


With e-KYC you can actually do an online account opening in a bank which will be much more simpler, says Sumant Kathpalia, head, consumer banking, IndusInd Bank

The soon-to-be-launched electronic know-your-customer (e-KYC) process, based on Aadhaar or unique identification number, would be a boon for the banking and financial services sector.

Pilot studies on e-KYC are underway. Based on the results of these studies, a launch is expected by December, say facilitators such as National Payments Corporation of India, Visa and MasterCard.

These organisations would act as a bridge between banks and financial service companies and the Unique Identification Authority of India.

“With e-KYC, you can actually do an online account opening in a bank, which will be much simpler. A lot of people in rural areas do not have the documents which we require for KYC. This will be a good instrument to get new accounts opened, especially in rural and un-banked areas,” said Sumant Kathpalia, head (consumer banking), IndusInd Bank. “This initiative will help banks like us to expand in rural and un-banked areas, along with our expansion in metros,” he added.

ADVANTAGE E-KYC
  • Under the electronic know-your-customer (e-KYC) process, customers can open a bank account online based on just their Aadhar card
  • While the physical KYC process takes five-seven working days, the time would be reduced to three days in the case of e-KYC
  • Using this process will also mean less documentation for insurance companies and customers

In its physical form, the KYC process is completed by banks in five-seven working days. “Through e-KYC, the time taken would be reduced to three days and this way, a bank can save the time, money and manpower required for the verification process. Adoption of e-KYC is very important by banks, as well as insurance companies and fund houses. e-KYC will be a very cost-effective move for us,” said a senior Central Bank of India official.

The insurance industry would also stand to gain. K G Krishnamoorthy Rao, managing director and chief executive of Future Generali India Insurance, said, “This will lead to less documentation for insurance companies and customers. Further, all verifications can be done online, which will ease the overall processing.”

Saturday, September 21, 2013

4610 - Banks say eKYC errors not their responsibility - TNN


Mayur Shetty, TNN | Sep 14, 2013, 06.22AM IST

MUMBAI: Banks have expressed concern over their liability to customers if the Aadhaar database is compromised or if there is a mistake in identifying a person. The trigger has been their agreement with the Unique Identification Authority of India ( UIDAI) for acceptance of electronic documents stored by the authority as proof of identity and address where the blame for any false identification lies with banks.

The matter has been referred to the law ministry and, according to sources, it has decided in favour of the banks. The government is therefore looking at ways to address concerns of banks by altering the agreement to state that banks will not bear any loss.

The crux of the issue has been the approval of Aadhaar for eKYC, or 'electronic know your customer' norms. Traditionally, it is the responsibility of the banks to ensure that the customer is indeed who he claims to be. His identity is ascertained by going through original documents such as telephone bills, passports or PAN cards and retaining a copy.

Under eKYC, a customer can walk up to a bank without any documents but offer his fingerprints. These will be matched with the Aadhaar database which, in turn, would be used for ascertaining identity and address.

"UIDAI has said that the process is fool proof and the systems cannot be compromised. But if that is the case, why should banks bear the liability if the system throws up a 'false positive'?" said a banker. False positive is jargon used in health and technology industry to refer to a test that has come up with wrong results.

Last week, RBI approved UIDAI's eKYC service as a valid process for KYC verification under its prevention of money laundering rules, 2005. In terms of the procedure outlined by RBI, banks have to obtain an express consent from the customer before accessing his database and obtaining his Aadhaar number. According to bankers, eKYC would make the process of acquiring new customers extremely easy. Also, banks will be spared a huge costs of scanning and retaining KYC documents.

Saturday, September 7, 2013

4562 - RBI validates e-KYC through Aadhaar - Business Standard

Surabhi Agarwal  |  New Delhi  September 5, 2013 Last Updated at 00:15 IST

This may reduce the risk of identity fraud and document forgery, paving the way for a paperless way of fulfilling KYC norms

The Reserve Bank of India has accepted an electronic KYC, based on the Aadhaar or Unique Identification (UID) number, as a valid way to open a bank account.

This could reduce the risk of identity fraud and document forgery, paving the way for a paperless way of fulfilling the know-your-customer (KYC) norms.

In a notification on Monday, the central bank said an e-KYC was acceptable under the Prevention of Money Laundering (Maintenance of Records) Rules, 2005. Banks may open a new account by taking a person's Aadhaar number and biometrics. Once matched, the demographic data, including identity and address proof stored with the UID's central registry, can be accessed by the bank concerned to complete the verification.

A bank will need to take "explicit consent" of the person concerned to "release her or his identity/address through biometric authentication to the bank branches/business correspondents," RBI said.

A P Singh, deputy director general of the Unique Identification Authority of India (UIDAI) said the move would help the banking and telecom sectors the most. These would save on the huge cost of storing and verifying the documents in question, along with the obvious advantages of establishing an audit trail and reducing document fraud. The department of telecom would also have to, first, notify an e-KYC as a valid verification process for new telecom connections.

"Since RBI has approved it, we're hoping other regulators such as the Securities and Exchange Board of India (Sebi) also allow e-KYC for other financial transactions," said Singh.

Business Standard had reported in July on a division regarding whether e-KYC was allowed under current law. The matter was referred to the law ministry. Last month, the ministry had approved, as it felt the Information Technology Act considered electronic documents at par with physical ones. The finance ministry had then written to RBI and to other regulators such as Sebi to issue directives for financial companies to start accepting e-KYC.

According to the RBI notification, banks will have to sign an agreement with UIDAI to access the e-KYC service, deploy hardware and software, develop a software application and define a procedure for obtaining customer authorisation fot UIDAI to share the data with the bank.

Monday, August 26, 2013

4524 - E-service to link existing records to Aadhar launched

E-service to link existing records to Aadhar launched
Manish Raj, TNN Aug 22, 2013, 04.02AM IST

CHENNAI: The Unique Identification Authority of India (UIDAI) has launched an electronic 'know your customer' (e- KYC) service to help people link existing records to their Aadhaar numbers in an easy and secure manner. It provides instant electronic proof of address, date of birth, gender, mobile number and email to service providers.


Using e-KYC, people can connect their existing documents like ration cards, pension accounts and driving licences with Aadhaar. This is expected to make data collection and verification easier for services like getting a new SIM card, bank account or a passport. Customers will not have to physically carry the required documents to avail themselves of services.

Under the new system, one can authorise the UIDAI to release e-KYC data to a service provider. The consent can be provided either in person (through biometric authentication) or online (through one-time password generation).
After authentication, the UIDAI will provide details like name, address, date of birth, mobile number and email address to the service provider electronically. This information at the point of service delivery will determine the eligibility of the consumer for services like LPG connection, scholarship, a loan, a social security pension and mobile connection.
e-KYC document is legally equivalent to paper documents as data transfer is secured through encryption and digital signature as per the requirements of IT Act, 2000. Further, as the data is provided by the UIDAI, there is no risk of forged documents. It will benefit service providers and regulators. While service providers will have reduced costs, enhanced security and better sales conversion, the latter can monitor compliance effectively. By eliminating the use of paper it will also be environment friendly.
Indian Bank chairman and managing director T M Bhasin said e-KYC would help customers approach banks and open accounts. It would also help banks implement subsidy schemes like Direct Benefit Transfer (DBT) and DBT for LPG (DBTL).

4521 - UIDAI launches Aadhaar-enabled electronic know your customer service- TOI

Manish Raj, TNN Aug 21, 2013, 03.15PM IST


CHENNAI: The Unique Identification Authority of India (UIDAI) has launched an electronic know your customer (e- KYC) service to help people link their existing records to their Aadhaar numbers in an easy and secure manner.

People can connect their existing records like ration cards, pension accounts, license and certificates with Aadhaar using e- KYC. It can be used while applying for various documents to ensure efficient delivery of the service.

Under the e-KYC process, one can authorise the UIDAI to release the KYC data to a service provider. The consent can be provided either in person (through biometric authentication) or online. The UIDAI will provide the details like name, address, date of birth, mobile number and email address to the service provider electronically.

"The e-KYC service will enhance customer convenience and increase business efficiency across sectors that require proof of identity and address to open customer accounts," said a press release.
The e-KYC service has been recognised by the ministry of finance as a valid document for all financial services, and the UIDAI is trying to extend it to all ministries and departments.