Aadhaar-based identity verification: UIDAI plans simplifying offline Aadhaar for citizen KYC; push for safer, user-friendly process

The Unique Identification Authority of India (UIDAI) is taking steps to bolster the offline Aadhaar-based identity verification process, aiming to make it safer, user-friendly, and extensively adopted throughout monetary and fintech companies, as per two senior bankers.

What is the important thing goal?

The key goals of UIDAI’s newest transfer are to permit Aadhaar-based KYC to be accomplished with out requiring residents to share their Aadhaar quantity or private particulars, thereby enhancing privateness and safety, ET reported.It additionally goals to simplify the offline identity verification process by selling the usage of QR codes and PDF codecs, making it simpler for customers to handle and share their identification paperwork. Additionally, the initiative is targeted on encouraging startups and monetary service suppliers to undertake compliant and controlled verification strategies by integrating with authorised businesses.

Why the Change?

The transfer comes amid considerations about unauthorised entry to Aadhaar knowledge. In June, the UIDAI and the Ministry of Electronics and Information Technology (MeitY) blocked a number of startup web sites for allegedly accessing Aadhaar data illegally. These disruptions hit a number of sectors, together with fintech, meals supply, and e-commerce, the place Aadhaar was extensively used for verifying gig staff and blue-collar workers.Many fintech and non-banking lenders confronted onboarding delays as they relied closely on Aadhaar for buyer verification.“There have been multiple rounds of conversations, and UIDAI has made it very clear that consumers will be able to use offline Aadhaar-based KYC without any need to share their Aadhaar number or personal details,” one of many bankers advised ET.The UIDAI is working to control and streamline the process by approved entities like Aadhaar Authentication Agencies and KYC User Agencies.

What’s New?

The UIDAI supplies three KYC choices:

“The problem was with the offline method, where many startups were providing this verification service through unauthorised means. UIDAI is coming down hard on players who are offering non-compliant offline KYC flows,” the founding father of an identity verification startup mentioned.With UIDAI clarifying norms and simplifying offline verification, extra banks and fintechs are anticipated to undertake it. Identity verification startups at the moment are trying to combine compliantly by partnering with approved businesses, guaranteeing continued service whereas adhering to rules.As the federal government tightens controls and improves usability, offline Aadhaar KYC is more likely to play an even bigger position in digital identity verification throughout India’s increasing monetary ecosystem.