NBFCs, payment system providers will also be able to take license of Aadhaar e-KYC, RBI has given permission

The Reserve Bank of India (RBI) has said that non-banking finance companies (NBFCs) and payment system providers can apply for Aadhaar e-KYC verification license to the central bank. . In May 2019, the Finance Ministry had released the detailed procedure for applications for use of Aadhaar verification services by entities other than banking companies.

In accordance with the provisions of the Prevention of Money Laundering Act (PMLA), 2002, entities other than banking companies, by notification of the Central Government, by using the e-KYC facility provided by the Unique Identification Authority of India (UIDAI) on the customer’s Aadhaar number may be allowed to certify.

Have to apply with RBI

In the circular issued by the Reserve Bank, it has been said that NBFCs, payment system providers and payment system participants can apply to the department for Aadhaar Verification License-KYC User Agency (KUA) License or Sub-KUA License which will be further will be sent to the Unique Identification Authority of India (UIDAI).

The central bank clarified that such notification would be issued only after consultation with UIDAI and the appropriate regulator. A detailed procedure for processing of applications under PMLA provisions for use of Aadhaar authentication services by entities other than banking companies has been provided by the Department of Revenue, Ministry of Finance in its circular dated May 9, 2019.

Applications will have to be sent to RBI through e-mail in the format provided on the Central Bank’s website.

RBI issued alert regarding KYC

RBI on Monday warned people in view of the fraud being done in the name of KYC verification. The central bank has advised people not to share important information like their account details or passwords with unknown persons or agencies.

RBI said in a statement that it has received complaints/reports regarding fraud with customers in the name of KYC verification.

This is how fraud happens

In this type of fraud, usually calls, SMS, e-mails are received by the customers regarding KYC verification and they are asked for personal information, account/log-in details, card information, PIN, OTP etc. In this, it is asked to download the unauthorized application through the link sent for KYC update.

According to the RBI, it has also received reports that phone or message givers also warn customers of account closure if they do not do so.

Once the customer calls/messages/shares information through unauthorized applications, the fraudsters get access to the accounts of the person concerned, the statement said.

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