Fintech firms awaiting word on Aadhaar: ET
After the recent Finance Ministry circular that laid down the framework for Aadhaar-based eKYC, the entire financial services sector is eagerly looking for directions from their respective regulators with respect to accessing Aadhaar data for KYC, as reported by Economic Times.
The Insurance Regulatory and Development Authority of India (IRDA) has already issued a notification for life and general insurance companies to submit a response to the Ministry circular.
"The IRDA notice demonstrates the important role that various industry bodies could play, by framing a common representation and defining the safeguards for data privacy and security," said Wriju Ray, cofounder of IDfy, a leading Regulatory Technologies company.
IRDA, which highlighted the five points on which an industry response was expected, wanted companies regulated by it to submit a "description of arrangements made for safety and security of data", prepare for the maintenance of privacy and security of data as prescribed by the UIDAI and adhere to cybersecurity guidelines of the insurance regulator.
The fintech space including payment enablers, NBFCs, mobile wallets, and broking agencies are hoping for a similar response from their respective regulators that can help their digital KYCs back on the Aadhaar data and infrastructure. This can greatly improve the efficiency and competitiveness of the industry.
IDfy is one of world's top 100 regulatory technology companies.
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