BUSINESS Use Aadhaar e-KYC for DBT, UIDAI tells banks

New Delhi, Oct. 28: The UIDAI has clarified to banks that Aadhaar eKYC can be used to authenticate beneficiaries of government subsidies and welfare schemes while for other customers physical Aadhaar card can be used for verification, a source said.

The Aadhaar-issuing authority Unique Identification Authority of India (UIDAI) wrote to the banks last week clarifying the instances and modes in which Aadhaar can be used, and a copy of the same was also sent to the Reserve Bank, a senior UIDAI official told PTI.

The UIDAI wrote to banks after it received legal opinion on the matter, in the wake of a recent Supreme Court verdict that restricted the use of Aadhaar by private entities but cleared it for welfare schemes.

The UIDAI informed the banks that they can use Aadhaar authentication for beneficiaries of government subsidies and welfare schemes, and listed various ‘options’ for the use of Aadhaar (such as Quick Response or QR code and offline Aadhaar) for other banking customers in the light of Supreme Court judgement in the Aadhaar case, said the official who did not wish to be named.

Physical Aadhaar card can be used for verification in an offline mode if produced voluntarily, it clarified.

When contacted UIDAI CEO, Ajay Bhushan Pandey told PTI, “There are viable and completely paperless and digital options available through digitally signed electronic form of Aadhaar which allows identity to be verified online without pinging our server. And through such methods the services can be seamlessly and digitally offered by banks for non-DBT customers”. He also confirmed that UIDAI’s views have been sent to banks but did not elaborate on details. — PTI