Customers’ prior consent mandatory for use of Aadhaar-based e-KYC: IRDAI


Getting customers’ consent before using Aadhaar and accessing any personal information mentioned in the Unique Identity Authority of India (UIDAI) for e-Know Your Customer (e-KYC) purposes has been marked mandatory, said the Insurance Regulatory and Development Authority of India (IRDAI).

“Insurers can use the e-authentication facility being provided by UIDAI either through the fingerprint or iris scanning) or through one-time password (OTP) received on client’s mobile number or an e-mail address registered with UIDAI,” said IRDAI, responding to a clarification on the existing circulars issued on the matter.

“The information downloaded from UIDAI shall be considered as sufficient information for the purpose of KYC verification,’’ the authority said.

The authority further mentioned that the records of KYC information collected from the customers should be kept safely by the insurers, it added.

Through its earlier circulars issued in 2013 and 2015, IRDAI had allowed Aadhaar based e-KYC service offered by UIDAI for the KYC verification.

“It is hereby clarified that for accessing the details of the client from UIDAI for identification and authentication shall be with the consent of the client on a voluntary basis,” said IRDAI in a circular.

A nine-judge bench of the Supreme Court, headed by former Chief Justice of India JS Khehar (succeeded by Dipak Misra), last week jointly announced the “Right to Privacy” as part of “Right to Life and Liberty” assured under Article 21 of the Constitution of India.

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