Sahil Mathur

The legendary former president of the United States of America once referred to banks as the master of all the country’s progress and industry and rightly so. Today, there is not even a single reasonable individual out there who would disagree with the idea of banks being the epicenter of any country’s progress and development. It is almost impossible to realize true national progress and prosperity unless the focus is put entirely on the advancement and better facilitation towards the banks that run the national economy.

RBI’s recent announcement allowed entities registered with it to use Video-based customer KYC (V-CIP)solution. That meant instead of sending agents to the customer’s address, now REs could verify the customer’s identity remotely via a recorded video call. RBI defined how V-CIP (video-based customer identification process) should be done, we have summarized the circular in our article here.

About 3 people in 100 have credit cards in India, while there are 930 million debit cards and 1.57 billion bank accounts that are about 80 percent of the total population, that’s the data from January 2019.

With the recent amendment in the Prevention of Money Laundering Act, 2002 (PMLA), the Ministry of Finance now allows different ways to capture client’s details electronically; Digital KYC. We have tried to explain the amendment in our post here.

Supreme court’s judgement on Aadhaar and its use by private organizations all but pushed the BFSI sector back to its legacy processes of manual verification. Some sectors saw as much as 40% downturn in the new customer acquisition when compared to the eKYC era.

RBI recently released a new circular with respect to the use of Offline Aadhaar and Video-based KYC to verify the identity of the customer. AS per the new amendment regulated entities are now allowed to used Video-based KYC or Offline Aadhaar along with a recorded proof and location of the customer to complete KYC.

2018, saw $1.5 billion lost due to fraudulent incidents in the world. With over 500,000 identity theft-related frauds being reported, combined with a bulk of unreported incidents ID theft is one of the top 3 types of fraud affecting the banking and financial sector in the world.

Dalberg along with Omidyar network India recently did human-centered design-based research on how Aadhaar is being received and used by the masses. You can access the actual report here.

When you hear about “Digital identity” or KYC, you in all probability are thinking about banks and loans. KYC is something that you hear from banks or loan agents all the time and well, we do talk about these a lot!

Digital Signature schemes were first defined in 1984, while the first commercial product came in to being in 1989. It’s been more than 30 years since digital signature has been available for use in various formats. Though most people tend to confuse digital signature with an electronic signature and more often than not use them interchangeably.

If you are a part, have been a part of the banking and payments sector then you know what I mean when I say RBI and its regulations dictate everything that happens there. Right from how customers need to be acquired to how they should be interacted with and where or where not the money received should go.

If you have had the chance to have a look at our article on eNACH, you should have noticed we speak about “Mandates” extensively there.

There has been a tremendous amount of conversation on the web about the use of biometric information by organizations specifically by governments and global conglomerates to track citizens and users respectively.

Over the past year, we released Veri5KYC, a suite of products catering to KYC and verification needed by BFSI and Fintech industry. Companies in the transport, delivery, and ecommerce space also adopted Veri5KYC products to ascertain the safety of their customers and protect themselves from identity fraud.

Being a lending focused startup is hard business and from all our conversations with our customers both in lending and subscription-based companies we realized that the hardest part of both of them was to get the recurring payment in, i.e. EMI for lenders and monthly subscription fee for SaaS products from the customers.

If you anything like me, you would have at least ones rented, bought things on EMI or would have taken a loan from a bank sometime in your life and if you have, you might have received an SMS or an email which goes something like this

In our constant effort to improve Veri5Digital, we spend countless hours researching, evaluating and building products and features that can help “YOU” our customers.

In our introductory chapter we took you through the major highlights that RBI master circular on KYC had and how it affected you as a regulated entity.

UIDAI’s decision to charge for eKYC transactions, had considerable effect on financial institutes including banks and NBFC’s that were dependant on eKYC to fulfil their KYC obligations, though what most ignored was its effect on eSign,

RBI, SEBI, UIDAI and IRDAI tend to update their KYC mandate overtime and considering how official circulars are written most of us require the help of a legal expert to understand and interpret the changes and regulations that might affect you as an enterprise registered and regulated by one of these entities.

RBI’s latest amendment of master directive on KYC, allowed regulated entities including banks to use offline Aadhaar for identifying and verifying their customers as required by PMLA act. This meant all private sector companies that had lost, an easy to use method of KYCing with eKYC, can now use Offline Aadhaar which is very similar to ekYC to KYC their customers.

Aadhaar, apart from being India’s unique identity program was also responsible for changing the way how people looked at digital identity. The supreme court verdict on Aadhaar limited access of Aadhaar data by private companies and lead 2 drastic changes in the market,

The government of India enacted Prevention of Money Laundering Act, in 2003 with an objective of preventing and control money laundering by antisocial elements.

A quick Google or DuckDuckGo search would reveals more than 20 times in 2018, when a million users or more of a website, or a service or an app got their private information stolen. And that are the ones that we know of.

On 2nd March, 2019, the President of India vide the office of Ministry of Law and Justice notified the Aadhaar and Other Laws (Amendment) Ordinance, 2019 (“Ordinance”). The Ordinance proposes the same amendments as those contained in the Aadhaar Bill, 2018,

Irrespective who you are, if you own an email id, have Facebook, Instagram or Google Plus account; you have an online profile, a web based personality.And if you are online chances are companies and organisations, government or otherwise have tracked your behaviour and have kept extensive records.

KYC or Know your customer, simply put is the process of identifying a customer with a goal of detecting and avoiding fraud in financial transactions, as such it is legally binding to financial institutions including banks and NBFC’s.

One of the best things about Aadhaar API was its ability to allow organisations like Banks and other financial institutions to instantly verify the identity of the customer, as required by RBI regulations. This meant new accounts and loan disbursements could be done almost instantly and with minimum to no human intervention.

For a startup founder considering Fintech, lending remains an unexplored market and with a larger number of young potential customers entering the foray, it becomes more lucrative than ever.

They who can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety.

Aadhaar has been in news for quite some time, especially the debate around how it may allow government to monitor its citizens.

KYC or Know your customer, simply put is the process of identifying a customer with a goal of detecting and avoiding fraud in financial transactions, as such it is legally binding to financial institutions including banks and NBFC's.