The Indian authorities are reminding their efforts made in the field of new technologies and in the implementation of a number of projects, such as “make in India”, “India skill”, “Digital India” recently launched to make India more competitive.
The Unique Identification Authority of India (UIDAI) is a central government agency. Its aim is to collect biometric and demographic data of residents, store them in a centralized database, and issue a unique identity number called Aadhaar (12 digits) to each resident. This is the largest biometric identification project in the world. Until now, around 92% of India’s adult population has Aadhaar card, according to The Times of India.
Indian government officials have sought to address the concerns of the population by a series of information repeating that the electronic identity card was not compulsory but recommended and useful to all. One of the most spectacular applications is that of securing the identity of the citizen, known as e-KYC.
In details, Aadhaar eKYC is a service offered under Aadhaar project by UIDAI department of Government of India. Under this service organizations can establish the positive Identity of their customers by validating their Name, Address and other information against their Biometric Identity with Aadhaar data center. The transformation from normal KYC to e-KYC brings many benefits to the citizens as well as the government.
According to Identity Verification Guidelines of CCA, the normal KYC process requires paper documents to be submitted and subsequently CA should also carry out Mobile verification, Email Verification and Video Verification (in case of class 3) of the subscriber, as per details provided in application form. However, by using Adhaar e-KYC, the time for attestations and other verification is shortened. Moreover, the electronic “e-KYC” process deploying biometrics is further recommended in international transactions due to the unique biometrics of each person. Therefore, it can help the government to avoid identity theft, financial fraud, money laundering and terrorist financing. Realizing these advantages, today many companies prefer to deploy eKYC with biometrics.
Currently, several Indian telecom network operators including Idea Cellular, Vodafone and Airtel have opened e-KYC services. These new e-KYC services should enable carriers to reduce costs and time spent in the various checks. Biometric identity provided by the Aadhar card provides the identity of Indian citizens in less than 30 seconds if the person has an Aadhar card number. Another example is come from HDFC Bank, who Bank has introduced e-KYC in collaboration with the National Payments Corporation. With the e-KYC process, it becomes easier for a customer to open an account or to take out insurance without any data entry, all procedures being performed electronically.