The Reserve Bank of India (RBI) has said that till December 31, 2021, no bank account will be frozen due to non-updating of KYC of the account holder. It also said that non-banking financial companies (NBFCs) and payment system operators can apply to the central bank for Aadhaar e-KYC verification license. In May 2019, the Finance Ministry had released the detailed procedure for applications for use of Aadhaar verification services by entities other than banking companies.
Aadhaar EKYC Verification
The circular issued by the Reserve Bank said that NBFCs, payment system operators and payment system partners can apply to the department for Aadhaar Verification License-KYC User Agency (KUA) license or sub-KUA license which will be further referred to as UIDAI (Indian Unique Identification Authority of India).
sandbox plan
With this, the Reserve Bank has said that six entities have completed the testing phase of ‘Group I’ under the regulatory ‘sandbox’ scheme. Its topic is retail payments. Their products have been recognized as viable for acceptance by regulatory bodies. The central bank said the products of these entities mainly pertain to offline digital payments, prepaid cards, contactless payments and voice-based UPI.
Testing of new products and services
Regulatory sandbox generally refers to direct testing of new products and services in a controlled/tested regulatory environment. In this, the regulator can also allow some concessions. In the first group, the entities whose products have been found to be in line with the norms laid down by the Reserve Bank are Nucleus Software Exports (PeSe), Tap Smart Data Information Services (CitiCash), Natural Support Consultancy Services (IND-e-Cash), Profit Innovations (Tone). TAG), Ubona Technologies (BHIM Voice) and eRoot Technologies (Offline Payment through SIM).
