Fintech companies file petition to restore KYC verification

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Over 20 Indian companies have written to the CEO of the Unique Identification Authority of India (UIDAI) asking it to restore their access to agencies that provide KYC verification services to them, according to a report in The Economic Times.

It was reported last week that the government had revoked the access of financial tech companies to such agencies, to get new customers for their apps. This move adversely affected e-wallets and online lenders. These companies are now approaching UIDAI under the Aadhaar Act 2016, to address this problem, to prevent steep fall in their customer on-boarding.

The petition read: “Aadhaar enables a consent-driven, secure, faster and simpler delivery mechanism for residents to avail various essential services from trusted providers. The requesting parties can use online authentication to validate these identities, thus bringing in the trust that is required in the transaction. This is significantly more privacy protecting and cost-effective than the use of paper photocopies that were common before. As a result, it has enabled these businesses to service customers that they did not earlier".

KYC verification is now becoming a necessity in all financial industries all over the world, but none more than rapidly emerging markets like India. If you would like to learn more about how KYC can help your business then please click below.