Tuesday, June 6, 2017

eKYC, KUA - Latest UIDAI circular specifies fees, etc.

UIDAI has last week (on May 31 2017) published a circular for AUA/ KUA agreements.

Salient points in this circular are the requirements that an agency will need to provide a Bank Guarantee of Rs 25 Lakhs and a license fee of Rs 20 Lakhs (for a 2 year license) to become a KUA. The intention behind this exercise seems to be to weed out any spurious agencies acting as KUAs, and ensure that those seeking to become KUA have financial viability and a genuine business need to obtain eKYC data.

This is certainly a welcome step by UIDAI to impose some sort of financial filters on who can become a KUA.

Recently, we have heard some KUAs offering third-parties the ability to obtain eKYC data by making them sub-KUAs. Perhaps UIDAI would come up with regulations governing data sharing by KUAs and liabilities in this regard.