UIDAI cuts off access to KYC services to several fintechs

Friday 6 April 2018 13:04 CET | News

Unique Identification Authority of India (UIDAI) has revoked fintech`s access to a dozen agencies that provide eKYC verification and authentication services.

Some of these agencies - KUAs (eKYC user agencies) and AUAs (authorized user agencies) - will no longer be able to provide eKYC verification to onboard new customers or authenticate financial transactions affecting e-wallets, online lenders, NFBCs and smaller fintech players.

Many fintechs are not AUAs or KUAs themselves but sub-KUAs and sub-AUAs, addressing their requests through UIDAIs network. The recent development will affect these companies, particularly ecommerce players and peer-to-peer lending platforms, which operate on a completely online model. They will now have to change their way of doing business and incur higher costs to physically verify the credentials of their customers.

UIDAI officials said they are yet to understand the situation and certain approvals might have been revoked after a CERT-In empaneled IT security audit.

UIDAIs current list of 255 KUAs, include top banks like State Bank of India, Punjab National Bank, ICICI Bank, while its list of 310 AUAs, include players like Aircel, AIIMS, CDSL, CIBIL, among others. Many banks, including SBI, PNB, act as both AUAs (for financial authentication) and KUAs (for eKYC verification).

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: UIDAI, India, eKYC, fintech, authentication, identity verification
Categories: Securing Transactions | Digital Identity, Security & Online Fraud
Countries: World
This article is part of category

Securing Transactions