What changed
RBI has recognized UIDAI's e-KYC service as a valid process for KYC verification under PMLA Rules. The demographic data and photograph received electronically from UIDAI via biometric authentication can now be treated as an 'Officially Valid Document'. Physical Aadhaar letters remain acceptable as before.
What it means for you
Banks can now offer fully paperless account opening using Aadhaar e-KYC, cutting down on document handling and fraud risks. This streamlines customer onboarding, especially for remote or branchless channels, but requires investment in STQC-certified biometric scanners and KUA agreements with UIDAI.
What you must do
- Sign a KYC User Agency (KUA) agreement with UIDAI to access e-KYC services.
- Deploy STQC-certified biometric scanners at branches, micro ATMs, and BC points.
- Develop software to integrate e-KYC across all customer service points as per UIDAI specifications.
- Update your bank's KYC policy to include e-KYC as a valid verification method.
- Ensure explicit customer consent is obtained to authorize UIDAI to release identity/address data through biometric authentication to the bank or BC.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions, Business Correspondents (BCs)
Can we still accept physical Aadhaar letters for KYC?
Yes, physical Aadhaar cards or letters issued by UIDAI continue to be accepted as an 'Officially Valid Document' under PML Rules.
What infrastructure is needed for e-KYC?
Banks must sign a KUA agreement with UIDAI, deploy STQC-certified biometric scanners, and develop software to handle e-KYC across branches, micro ATMs, and BC points.
Does the customer need to give consent for e-KYC?
Yes, the individual must explicitly authorize UIDAI to release their identity/address data through biometric authentication to the bank or BC.