The central bank is waiting for amendments to be made to the Prevention of Money Laundering Act before modifying its know-your-customer (KYC) guidelines
The Reserve Bank of India (RBI) is planning introduction of new modes, such as live video, of electronic verification for customers of financial institutions, according to a report by The Economic Times.
The report suggests that officials of the central bank in a meeting with industry executives last week, indicated that they were keen on unveiling a digital authentication method that would use the XML internet format to extract limited information on customers from the Aadhaar database.
This, however, would not include the biometrics collected while generating Aadhaar numbers for Indians, the report said.
The industry suggested usage of videos as an alternative method to the Aadhaar biometrics-based electronic customer verification, which has now been stopped following the Supreme Court of India’s ruling in September.
Following the verdict, which barred private entities from using Aadhaar biometrics for customer verification, banks and fintech companies have been facing challenges using that method.
The newspaper, quoting payments industry executives, said the RBI is more open to live rather than recorded videos. “RBI is more keen on starting off with XML-based Aadhaar authentication instead of offline QR code-based verification since the industry is not ready with that offering yet," sources told the paper.
The central bank is waiting for amendments to be made to the Prevention of Money Laundering Act before modifying its know-your-customer (KYC) guidelines.
