Aadhaar-based e-KYC for savings accounts in post offices is now possible

Until the full system enhancements are implemented, customers' consent for e-KYC and specimen signatures will be collected using physical forms

India Post recently introduced Aadhaar-based authentication for Post Office Savings Account (POSA) opening and other transactions, enabling a paperless know your customer (KYC) process. Effective from January 6, 2025, it’s a major upgrade to India’s postal banking operations.

 

The e-KYC-based account opening process will be implemented in phases. In Phase I, new customers will be on-boarded, and Customer Information Files (CIFs) will be created using Aadhaar authentication. Then, single and individual Post Office Savings Accounts (POSAs) will be opened through e-KYC at departmental post offices.

 

In Phase II, the Aadhaar authentication (e-KYC) process will be extended to include the following transactions:

 

Opening and closure of accounts under other schemes, such as Recurring Deposits, Time Deposits, Monthly Income Schemes, and Senior Citizens Savings Schemes, along with related transactions.

 

Opening and closure of joint, minor, and authorised-type savings accounts, as well as conducting transactions and managing various operations for these accounts.

 

Facilitating transactions in e-KYC accounts through additional channels like DARPAN, eBanking, and M-Banking.

 

Closure of single-type savings accounts.

 

“CIF of the customers who are willing to provide the consent for Aadhaar e-KYC shall be created on Aadhaar Biometric Authentication URL, such case the details (Name of the customer, father or husband name, DOB, gender, address with PIN code) will be fetched from Central Identities Data Repository (CIDR) of Unique Identification Authority of India (UIDAI),” according to the Department of Posts order.

 

Deposits and withdrawals

 

Deposits and withdrawals of up to Rs 5,000 can be conducted using Aadhaar biometric authentication without the need for a paper voucher.

 

Third-party deposit transactions must adhere to the conventional pay-in-slip process.

 

Aadhaar-authenticated transactions are automatically posted in Finacle without requiring verification by a checker.

 

All records, whether physical or digital, containing Aadhaar details must display only masked Aadhaar numbers. It is the responsibility of postmasters to ensure adherence to these guidelines.