In a major step toward enhancing digital identity verification, the National Payments Corporation of India (NPCI) has announced that all entities regulated by the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), and Pension Fund Regulatory and Development Authority (PFRDA) can now access Aadhaar-based e-KYC services via NPCI’s newly launched e-KYC Setu System.
The e-KYC Setu System is designed to simplify the onboarding process for regulated entities by offering a secure, user-friendly platform for Aadhaar-based electronic Know Your Customer (e-KYC) authentication. Crucially, the system allows for client identity verification without revealing the Aadhaar number to the reporting entity, ensuring enhanced privacy and full compliance with the Aadhaar Act.
Key Features of the e-KYC Setu System:
-
Simplified Onboarding: Streamlines the KYC journey for regulated entities under RBI, SEBI, IRDAI, and PFRDA.
-
Enhanced Privacy Compliance: Enables identity verification without exposing Aadhaar numbers.
-
Reduced Operational Complexity: Minimizes the burden of managing sensitive Aadhaar data.
-
Flexible Integration: Allows entities to select technology platforms suited to their business use cases for capturing Aadhaar numbers and OTPs.
This initiative is poised to significantly advance financial inclusion by enabling easier access to financial services for India’s underbanked and underserved populations.
Entities interested in utilizing the e-KYC Setu System can find detailed guidelines in the official NPCI circular.
