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  • MF News Major setback for online distributors: UIDAI asks KRAs to immediately stop eKYC

    Major setback for online distributors: UIDAI asks KRAs to immediately stop eKYC

    eKYC no longer available in mutual funds, insurance and other financial products.
    Nishant Patnaik Oct 16, 2018

    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.

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    8 Comments
    Abhijeet Mukherjee · 5 years ago `
    Few Insurance companies are doing aadhar Kyc and ,started online platforms for there Advisors,it should also be stopped
    sharad sharda · 5 years ago
    In view of Supreme Court rulings, now no one can be forced to share his Aadhar details. Who soever asking for Aadhar is doing against that verdict.
    Reply
    PRADEEP POWAR · 5 years ago `
    For easy money, now they are forcing peoples to switch the Schemes and change Broker codes in existing Investments. The facility of online change in Broker name must be stopped.
    Shiv priya Dutta · 5 years ago `
    With the growing number of rejection & time taken in physical KYC ,EKYC was really an easy for Distributors. Now by stopping this it had created a major hurdle in doing mutual fund business.
    Santosh Kumar Bhardwaj · 5 years ago `
    For distributor adhar ekyc is very helpful. Not to be closed it.
    ajaykumar Khandare · 5 years ago `
    For distributor adhar ekyc is very helpful. Not to be closed it.
    ANURAG DUREHA · 5 years ago `
    In my opinion, challenging the system of eKYC is akin to challenging the very basic concept of KYC. Using xerox of documents is much more riskier than doing eKYC. You don't even know where those photocopies can travel to be misused. While in biometrics, it was so very well streamlined that any misuse could be easily tracked.
    By the way, those geniuses, who think that they can find any system or procedure which is 100% error-free or with zero-risk, are sadly mistaken. There will always be a balance between risk and benefits and I feel, with UIADI ensuring precautions which are far better than found anywhere in the world, eKYC is the best option.
    The entire episode of Aadhar and Biometrics reminds me of an old story where the wiseman in the village suggested the villagers to stop using automobiles so as to reduce the number of road accidents and go back to bullock-carts. God help the wisemen in our country.
    Vasagan Arasu · 5 years ago `
    If the courts can be convinced that the data theft cannot happen and we are allowed to use the facility Aadhar verification it would save lot of time and Paper work. To open a De Mat account in the physical form we have to use nearly 20 to 30 sheets of A4 papers. Waste of resources.
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