Executive Summary:
This circular from the Reserve Bank of India (RBI), dated September 13, 2021, outlines the process for Non-Banking Finance Companies (NBFCs), Payment System Providers, and Payment System Participants to apply for an Aadhaar eKYC authentication license. It references Section 11A of the PML Act, 2002, and provides an application format for entities seeking KYC User Agency (KUA) or sub-KUA licenses from the UIDAI. Interested entities can submit their application to the RBI for forwarding to UIDAI.
Key Points / Main Content:
* **Eligibility and Application:**
* NBFCs, Payment System Providers, and Payment System Participants can apply for Aadhaar Authentication License (KUA License or sub-KUA License).
* Applications should be submitted to the Department of Regulation, RBI, for onward submission to UIDAI, even via email.
* The application format is provided in the Annex to the circular.
* The application must include a board resolution approving the application for an eKYC license.
* **Application Requirements:**
* Entities must provide detailed information in the enclosed information sheet, including:
* Entity details (name, type, registration details, addresses, contact person).
* Financial information (Net Owned Funds).
* Customer base information.
* Processes for establishing customer identity.
* Principal Officer details.
* Filing details with RBI and Registrar of Companies (RoC).
* Details of data breaches, if any.
* Details of penal actions by RBI/SEBI, if any.
* Confirmation of compliance with UIDAI's Data Security Regulations 2016.
* Self-disclosures.
* Applicants must declare the accuracy and completeness of the provided information.
* Applicants must declare the possession of resources to protect customer data and combat cyber security risks.
Impact Analysis:
**Non-Banking Finance Companies (NBFCs), Payment System Providers, and Payment System Participants:**
* Impact: Opportunity to streamline customer verification processes through Aadhaar eKYC authentication, potentially reducing costs and improving efficiency.
* Action Required: Those desiring to perform Aadhaar Authentication of customers must prepare and submit an application to the RBI, including all required information and documentation as per the provided format.
**Reserve Bank of India (RBI):**
* Impact: Responsible for receiving and processing applications from NBFCs, Payment System Providers, and Payment System Participants and forwarding them to UIDAI.
* Action Required: Establish a process for receiving, reviewing, and forwarding applications to UIDAI.
**Unique Identification Authority of India (UIDAI):**
* Impact: Responsible for issuing Aadhaar Authentication Licenses (KUA or sub-KUA) based on applications forwarded by the RBI.
* Action Required: Review applications forwarded by the RBI and issue licenses to eligible entities.
Key Entities Referenced
Prevention of Money Laundering Act, 2002: An Act of the Parliament of India to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto.
Unique Identification Authority of India: A statutory authority established by the Government of India under the Ministry of Electronics and Information Technology, responsible for implementing the Aadhaar Act, 2016 and issuing Unique Identification Numbers (UIDs), also known as Aadhaar numbers, to all residents of India.
Aadhaar: A 12-digit unique identity number issued to all Indian residents based on their biometric and demographic data.
Non-Banking Finance Companies: A financial institution that provides banking services without holding a banking license.
Payment System Providers: Entities that provide payment services or operate payment systems.
Reserve Bank of India: India's central bank, responsible for regulating the banking system and monetary policy.
Ministry of Finance: A ministry within the Government of India concerned with the economy of India, serving as the Indian Treasury.
Mumbai, Maharashtra: The financial capital of India, where the central office of the Reserve Bank of India is located.
RBI/2021-22/98
DOR.AML.REC 48/14.01.001/2021-22 September 13, 2021
The Chairpersons / CEOs of all Non-Banking Finance Companies (NBFCs), Payment
System Providers and Payment System Participants
Madam / Dear Sir,
Application for Aadhaar e-KYC Authentication Licence
In terms of Section 11A of the PML Act, 2002, entities other than banking companies
may, by notification of the Central Government, be permitted to carry out
authentication of client’s Aadhaar number using e-KYC facility provided by the Unique
Identification Authority of India (UIDAI). Such notification shall be issued only after
consultation with UIDAI and the appropriate regulator.
A detailed procedure for processing of applications under the aforementioned Section
for use of Aadhar authentication services by entities other than banking companies
has been provided by the Department of Revenue, Ministry of Finance vide their
circular dated May 9, 2019.
2. Accordingly, Non-Banking Finance Companies (NBFCs), Payment System
Providers and Payment System Participants desirous of obtaining Aadhaar
Authentication License - KYC User Agency (KUA) License or sub-KUA License (to
perform authentication through a KUA), issued by the UIDAI, may submit their
application to this Department for onward submission to UIDAI. The applications can
also be forwarded over email. The format of the application is provided in the Annex
to this circular.
Yours faithfully,
(Prakash Baliarsingh)
Chief General Manager
िविनयमन िवभाग, क��ीय कायार्लय, क��ीय कायार्लय भवन, 12व�/ 13व� मंिज़ल, शहीद भगत �संह मागर्, फोटर्, मुंबई - 400001
टेलीफोन/ Tel No: 22661602, 22601000 फैक्स/ Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid
Bhagat Singh Marg, Fort, Mumbai – 400001
�हदं ी आसान ह,ै इसका �योग बढ़ाइएANNEX
APPLICATION FORM FOR AADHAAR AUTHENTICATION LICENCE IN TERMS OF SECTION 11A
OF THE PML ACT, 2002 READ WITH GOVERNMENT OF INDIA CIRCULAR ‘F.NO.P-12011/7/2019-
ES CELL – DOR’ DATED MAY 9, 2019
By email to cgmaml@rbi.org.in
To
The Chief General Manager-in-Charge
Department of Regulation
Business Conduct Group
Reserve Bank of India, Central Office
12th Floor, Central Office Building
Shahid Bhagat Singh Marg, Fort
Mumbai-400 001
Dear Sir,
Application for Aadhaar Authentication Licence in terms of Section 11A of the PML Act, 2002
read with Government of India Circular ‘F.NO.P-12011/7/2019-ES CELL – DOR’ dated MAY 9,
2019
We refer to Section 11A of the Prevention of Money Laundering Act, 2002 read with the Circular dated
May 9, 2019 of the Government of India titled - “Procedure for processing of applications under Section
11A of the Prevention of Money-Laundering Act, 2002 for use of Aadhaar authentication services by
entities other than Banking companies” and the circular DOR.AML.REC 48/14.01.001/2021-22 dated
September 13, 2021, issued by the RBI.
2. In this regard, we are desirous of performing Aadhaar Authentication of customers willing to undergo
the same in compliance with the extant legal and statutory requirements.
We, therefore, request you to kindly process the application to enable our entity to obtain Aadhaar
Authentication License {KYC User Agency (KUA) License} issued by the UIDAI Or Sub KUA
License issued by the UIDAI to perform authentication through a KUA. (select the applicable
option and strike off the other one)
The required information as per the enclosed information sheet is furnished.
3. We declare that to the best of our knowledge and belief, the information furnished in this application
is correct, complete and true. The proposal has the approval of the Board/sub-Committee of the Board
empowered in this regard. The resolution adopted for this purpose is enclosed. We are aware that if
any of the information furnished herein is found to be incorrect/ incomplete/ untrue, the application is
liable to be rejected. We also declare that the entity owns necessary resources to protect customer
data and have measures in place to combat cyber security risks as per the latest applicable standards.
Yours faithfully,
(Signature of Authorised Official/s)
Name : Official Mail ID :
Designation : Phone :
Date : Place :INFORMATION SHEET
Sr. Particulars Details
No.
1 Name of the Non-Bank Regulated Entity
2 Type of entity (NBFC / Payment System Provider/ Payment System
Participant)
3 Date of registration with RBI
4 RBI Registration/Licence Number
5 PAN Number
6 GST Number
7 Address of registered office
8 Address for correspondence
9 Name and contact details (email, telephone) of contact person
10 Net Owned Funds as on March 31 of previous financial year Rs. crore
11 Number of years of operation as on March 31 of previous financial year
12 Number of customers at the end of last 3 Financial Years FY Number of
customers
13 Processes currently being used for establishing the identity of customers
(e.g. certified copy of Officially Valid Documents, Offline verification etc.)
14 Attach copy of Board/sub-Committee of the Board Resolution adopted for this
purpose i.e. for application for e-KYC licence
15 Name and contact details of Principal Officer
a) Indicate the date when the last off-site return was filed to the RBI
16 b) Whether this was filed within the stipulated timeframe
c) Whether entity has been regular in filing of these returns. If no, indicate
the reasons thereof
a) Indicate the date when the last return to Registrar of Companies (RoC)
17 was filed/e-filed
b) Whether this was filed within the stipulated timeframe
c) Whether entity has been regular in filing of these returns. If no, indicate
the reasons thereof
18 Details of incidents of data breach including cyber security breach, if any,
in the last 3 years
19 Whether any penal action has been taken by the RBI / SEBI in the last
three years against the applicant. If so, furnish details including status of
the proceedings and whether the penalty has been paid.
20 Whether entity is meeting the standards of complying with the Data
Security Regulations 2016 of UIDAI and other related guidance / circularissued by UIDAI from time to time with regard to the Privacy and security
Norms.
21 Any other observation / Self Disclosures by the entity
Yours faithfully,
(Signature of Authorised Official/s)
Name : Official Mail ID :
Designation : Phone :
Date : Place :