In a major setback for online distributors relying on Aadhaar based eKYC to onboard new clients, UIDAI has asked KYC registration agencies (KRAs) to stop immediately doing Aadhaar based authentication for eKYC.
In fact, the UIDAI has asked KRAs to give them in writing that they have stopped using Aadhaar based authentication for eKYC, said three sources familiar with the development.
Ever since the Supreme Court has come out with its verdict on Aadhaar, there has been lack of clarity among fund houses, R&T agents and distributors on using Aadhaar based eKYC for onboarding new clients. In fact, a few distributors and fund houses continued with Aadhaar based eKYC to onboard new clients.
With this, new age distributors would be affected the most as they completely rely on Aadhaar based eKYC to onboard a new client.