What changed
RBI has expanded the list of acceptable KYC documents to include the electronic output from UIDAI's e-KYC service, which uses biometric authentication to fetch name, age, gender, and photograph. Earlier, only the physical Aadhaar letter was accepted. Banks must now sign a KUA agreement with UIDAI and deploy STQC-certified biometric scanners to use this service.
What it means for you
For RRBs and cooperative banks, this move simplifies customer onboarding by eliminating paper-based verification and reducing identity fraud. It allows instant, secure KYC through biometric authentication at branches or BC points. Banks need to invest in certified hardware and update their KYC policies to integrate this digital process, but it will lower operational costs and improve customer experience.
What you must do
- Sign the KYC User Agency (KUA) agreement with UIDAI to access e-KYC services.
- Deploy STQC-certified biometric scanners at branches, micro ATMs, and BC points as per UIDAI standards.
- Update your bank's KYC policy to explicitly include e-KYC output as an Officially Valid Document.
- Ensure explicit customer consent is obtained before initiating biometric authentication for e-KYC.
- Train staff and BCs on the e-KYC process flow and data handling procedures.
Who it affects
Regional Rural Banks (RRBs), State Cooperative Banks (StCBs), Central Cooperative Banks (CCBs), Business Correspondents (BCs) of these banks, Customers opening accounts with these banks
What is the key difference between the old Aadhaar letter and the new e-KYC service?
The old Aadhaar letter was a physical document accepted as proof of identity and address. The new e-KYC service is an electronic process where UIDAI sends demographic data and photo directly to the bank after biometric authentication, making it paperless and reducing forgery risk.
Do we still need to accept physical Aadhaar letters after this circular?
Yes, the circular explicitly states that physical Aadhaar cards or letters issued by UIDAI will continue to be accepted as an Officially Valid Document. The e-KYC service is an additional option, not a replacement.
What infrastructure is required to implement e-KYC?
Banks must sign a KUA agreement with UIDAI, deploy STQC-certified biometric scanners at all service points, and ensure a secured network connection to UIDAI for data transfer. The annex provides detailed operational procedures.