The Unique Identification Authority of India (UIDAI) has reportedly allowed banks to do Aadhaar based authentication to on board new customers through QR code imprinted on eAadhaar or Aadhaar card. This will be on a voluntary basis – it will not be compulsory for the customer.
Following this, AMCS and distributors too are likely to be allowed to do Aadhaar based authentication to on board new customers through physical mode using Quick Response (QR) code, say sources.
QR code is like barcode that can be read through a device to authenticate verification of a person.
Sources say AMCs and distributors can develop a web or mobile app to read QR code printed on Aadhaar card to do KYC. This will reduce cost and turnaround time.
In addition, UIDAI is said to have been considering to use a live picture of customer with time stamp and photo of a government-issued ID card. Customers can upload their live photograph along with the valid ID proof to complete the KYC process.
Earlier, UIDAI has asked KYC registration agencies (KRAs) to stop doing Aadhaar based authentication for eKYC. In fact, online distributors, fund houses and R&T agents using Aadhaar based eKYC for onboarding new clients have discontinued doing eKYC.
