As it is it has come to the fore, that after Supreme Court’s verdict on aadhaar-based KYC, eKYC has been done away with. And consequently, it is known that the banking system has been taken back by 7-8 years as it has now again to rely on the age-old paper verification process i.e. time consuming as well as increasing the overall costs of operation for the sector.
And in its view as per the leading business dailies report, the RBI is mulling introduction of new electronic ways of verification such as the live video in order to verify customers of financial institution.
But before implementing such an action, the RBI is waiting for any amendments to be made to the Prevention of Money Laundering Act.
As per the report industry executives and RBI officials in a meeting have been delving on ways to extract partial information about customers using the XML internet format from the aadhaar database. Nonetheless, the process would not be including biometrics taken during the generation of aadhaar number.
It is to be noted that for obtaining digital signatures, the department has recently introduced a recorded video method, wherein the applicant needs to send over his video as per the format to ascertain his or her identity.
Also, as per the report there is more of emphasis given to live videos instead of the otherwise recorded video format and this is viewed as a better alternative to the offline QR-code based verification.
