RBI allows NBFCs to use e-KYC service to verify identity

Non-Banking Financial Companies (NBFCs) have been allowed to accept e-KYC service as a valid process to verify identity and address proof of customers to reduce risk of fraud and forgery.
"In order to reduce the risk of identity fraud, document forgery and have paperless KYC verification, UIDAI has launched its e-KYC service.
"Accordingly, it has been decided to accept e-KYC service as a valid process for KYC verification under Prevention of Money Laundering (PML) (Maintenance of Records)," the RBI said in notification addressed to NBFCs today.
The RBI said information containing demographic details and photographs made available from UIDAI via e-KYC platform may be treated as an officially valid document under PML Rules.

The apex bank further asked NBFCs to have proper infrastructure in place to enable biometric authentication for e-KYC.
However, the RBI made it clear that physical Aadhaar card or letter issued by UIDAI containing details of name, address and Aadhaar number received through post would continue to be accepted as an officially valid document.
Among other options, the RBI said NBFCs may also accept e-Aadhaar by downloading it from UIDAI website if a customer knows his Aadhaar number.
The RBI said NBFCs may revise their KYC policy after these guidelines and they should ensure strict adherence to same.