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. With the Supreme court’s verdict private institutions were barred from using Aadhaar APIs in September of 2018. Though with it’s latest ordinance Government of India now has allowed Banks and Telecom companies to use the API’s for user verification.
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. Read more on What is KYC? Why is it important? eKYC is when KYC is done electronically. With respect to Aadhaar, eKYC is defined as A paperless Know Your Customer (KYC) procedure, wherein the identity and address of the user are verified electronically through Aadhaar authentication. UIDAI built eKYC with a goal of simplifying customer acquisition
“They who can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety.” ― Benjamin Franklin, Memoirs of the life & writings of Benjamin Franklin What Benjamin Franklin meant by those words is debatable, though the fact remains that for much of history, humanity has traded off privacy for its need for survival, luxury or safety. Privacy was first pioneered by saints and yogis of the past. They devised the way of isolation, where they secluded themselves from the world to achieve inner peace and ultimately, nirvana. Privacy was
Running lending companies in India has it s own problem. Starting one shouldn't be one of them. In this article we try to list down 3 things that you as a Lending company founder should consider before you start the business.