RBI invites applications from NBFCs, payment system operators

0

The Reserve Bank of India announced on Monday that it has invited applications from Non-Banking Financial Companies (NBFCs), payment system providers and payment system participants, which are seeking to obtain Aadhaar e-KYC authentication licence.

According to the Prevention of Money Laundering Act (PMLA), 2002, the government through a notification may permit entities other than banking firms to authenticate client’s Aadhaar number using the e-KYC facility provided by the Unique Identification Authority of India (UIDAI). However, the notification must be only be issued after consulting with the UIDAI and the appropriate regulator, explained the central bank.

A detailed procedure for processing of applications under the aforementioned section for the use of Aadhaar authentication services by entities other than banking companies has been provided by the Department of Revenue, Ministry of Finance on May 9, 2019, the RBI statement said.

“Accordingly, non-banking finance companies (NBFCs), payment system providers and payment system participants desirous of obtaining Aadhaar Authentication License – KYC User Agency (KUA) License or sub-KUA License (to perform authentication through a KUA), issued by the UIDAI, may submit their application to this Department for onward submission to UIDAI,” the RBI explained.

See also  Single Maturity Scheme under Systematic Deposit Plan (SDP) Assures Returns on Monthly Savings Pool