On facing a crisis over the verification process of new customers, the Financial players has now initiated by providing its own suggestions to Reserve Bank of India for an alternative solution.
There has been hardly any progress made since the Supreme Court’s judgement that the banks and other financial institutions cannot entirely rely on Aadhaar as the only identity available to complete the e-KYC process. Physical verification methods other than this proves to be highly expensive for these institutions. The Parliament (only Lok Sabha) has passed a legislation, but it would not be wrong to point out that it excluded the other fintech bodies.
Now, Digital India Collective for Empowerment (DICE) and another that goes by the name Digital Lenders Association of India (DLAI) offers the remedy for this stalemate.
Whereas one suggestion is to have a video verification other suggestions are still being looked for by DICE. In fact DICE has also suggested an Adhar linked QR code for offline KYC. However RBI seems to be favourably inclined towards these ideas, no official announcement has been made yet.
Bank Bazaar, Eko India Financial Services, SBI Cards and Payments Services Ltd are some of the institutions that have signed on the communication to the RBI include.
DLAI is another body working on this digital space.
These organizations are collectively making trials to impress the RBI that the e-KYC is the best way out for onboarding new customers either for loan disbursal purposes or accounts opening purposes. According to them it becomes identify a larger geography at limited cost and now the availability of internet connected landlines even in rural areas makes it secure and the best.