The RBI released its new KYC Master Directives. We’ve read the 60-page document and distilled it down to the 6 bullet points that matter to you.
Aadhaar is now an OVD: The Aadhaar card or proof of possession of an Aadhaar number is now considered an Official Valid Document (OVD).- Aadhaar Offline not replacing Aadhaar eKYC: The way the directives are worded, Aadhaar offline verification is not really a substitute for Aadhaar Authorization (eKYC is a type of authorization). Thus, there is no alternative to eKYC. So Aadhaar offline verification, though allowed, seems a bit pointless. It might turn out to be just another OVD.
- Aadhaar Authorization still on only for Banks: The new directives restricts Aadhaar Authorization only to Banks keeping NBFCs, Payment Enablers and other Fintechs out of its purview.
- eKYC has limited utility: eKYC with OTP is valid only for a year after which regular KYC is required. There are other limitations to its applicability that severely limits the utility of eKYC with OTP.
- PAN is mandatory: PAN (or Form 60) is now mandatory. In fact, bank accounts without PAN linked to them can be suspended. This is likely to affect a large number of people as only about 200m people have PAN cards in India.
- Aadhaar Masking is a must: Yes, masking of the Aadhaar number to protect the citizens’ private data is a must when using Aadhaar cards for KYC. (The good news is that IDfy’s Aadhaar Masking product is working superbly and is being rapidly adopted by the industry.)
IDfy provides Digital KYC solutions to Banks, NBFCs, and Fintechs.
For more information, write to shivani@idfy.com
