RBI has also alerted people on frauds taking place in the name of KYC verification.
Now Non-Banking Finance Companies (NBFCs) and Payment System Providers can also get the right of Aadhaar e-KYC. The Reserve Bank of India (RBI) has said that NBFCs and payment system providers can apply for Aadhaar e-KYC verification license with the central bank. In May 2019, the Finance Ministry released the application (under PML Act) details for the use of Aadhaar authentication services on behalf of entities other than banking companies.
Will have to apply with RBI
The circular issued by the Reserve Bank said that NBFCs, payment system providers and payment system participants can apply to the department for Aadhaar verification license-KYC user agency (KUA) license or sub-KUA license, which is called It will be forwarded to the Unique Identification Authority of India (UIDAI). The application format has also been provided by RBI. Also Read: Big relief to SBI customers, now you can change the name of the nominee sitting at home, this is the way
According to the Prevention of Money Laundering Act (PMLA), 2002, entities other than banking companies can be allowed to authenticate the Aadhaar number of the customer using the e-KYC facility. A notification has been issued by the Central Government in this regard.
A detailed procedure for processing of applications under PMLA provisions for use of Aadhaar Authentication Services by entities other than banking companies is given in the circular issued by the Department of Revenue, Ministry of Finance dated May 9, 2019.
RBI alerts on KYC fraud
RBI has also alerted people on frauds taking place in the name of KYC verification. RBI has advised people not to share important information like their account details or password with any person or agency. RBI said in a statement on Monday that it has received complaints/reports regarding fraud with customers in the name of KYC verification.
Such frauds are done by sending calls, SMS, e-mails to the customers regarding KYC verification. In these, personal details, account / login details, card details, PIN, OTP are asked from the customer. In this, it is asked to download the unauthorized application through the link sent for KYC update. If not, customers are also warned to close the account.
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