Fri. Mar 29th, 2024
Aadhar Card

The centre and RBI are in talks to allow use of ‘offline Aadhaar’ that relies on QR codes, instead of the biometric eKYC (Know Your Customer) for opening bank accounts, operating payment wallets and purchasing insurance covers.

The move is likely to benefit financial technology companies which have been poking the government to amend the law to make Aadhaar mandatory.But the SC has ruled that Aadhaar-based verification could not be done by private firms.

The verdict does not make Aadhaar mandatory for bank accounts but for welfare schemes. This led to a discussion on the use of “offline Aadhaar” as it will not be linked to the Unique Identification Authority of India‘s servers.

The printout with the QR code is “digitally signed” by UIDAI, which makes it much more reliable than documents like ration cards, driving licences and voter IDs.

The use of offline Aadhaar will be facilitated by RBI. UIDAI has suggested that the KYC master circular should be amended so the rules are in sync with the SC order.

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