What changed
RBI issued a circular detailing the application process for NBFCs, payment system providers, and participants to obtain Aadhaar e-KYC authentication licences (KUA or sub-KUA) from UIDAI. This follows Section 11A of the PML Act, 2002, which allows non-banking entities to use Aadhaar e-KYC after central government notification. Applications must be submitted to RBI's Department of Regulation, which will forward them to UIDAI.
What it means for you
NBFCs and payment firms can now formally apply for Aadhaar e-KYC licences through RBI, streamlining customer onboarding and authentication. This reduces reliance on banks for e-KYC and enables direct Aadhaar-based verification, improving efficiency and compliance. Lenders should prepare to leverage this for faster, more secure KYC processes.
What you must do
- Review the application format provided in the circular's annex and prepare necessary documents.
- Submit completed applications to RBI's Department of Regulation via post or email as specified.
- Ensure compliance with PML Act requirements and UIDAI guidelines for KUA/sub-KUA licences.
- Monitor RBI and UIDAI updates for any changes in the application process or eligibility criteria.
Who it affects
Non-Banking Finance Companies (NBFCs), Payment System Providers, Payment System Participants, Compliance and KYC teams at these entities
What is the purpose of this circular?
It provides a procedure for NBFCs, payment system providers, and participants to apply for Aadhaar e-KYC authentication licences (KUA or sub-KUA) from UIDAI, routed through RBI.
Who can apply under this circular?
Non-Banking Finance Companies, Payment System Providers, and Payment System Participants that are not banking companies can apply.
How do I submit the application?
Applications must be sent to RBI's Department of Regulation in the format given in the annex, either by post or email as specified in the circular.