Over the past couple of years, banks, mutual funds, stock brokers and even insurance companies had begun on-boarding new customers or selling products using Aadhaar-based electronic KYC, in formats approved by their respective regulators. Undertaking e-KYC and using Aadhaar identifications speeded up processes and eliminated the need for physical documentation.
However, in October 2018, the Supreme Court declared that the segment of the Aadhaar Act, which enabled private companies to use Aadhaar to establish the identity of individuals, was “unconstitutional”. This sent the BFSI sector back to the not-so-good old days of requiring documents to undertake KYC, open bank accounts, etc.
But here’s the good news. DigiLocker could be the solution to KYC Documentation woes amongst many other benefits this cloud based platform could deliver. DigiLocker is the Government of India’s cloud based platform for issuance and verification of documents and certificates digitally. As the website (https://digilocker.gov.in/public/register#!) suggests, with DigiLocker, you can access your documents anytime, anywhere (from a mobile, handheld device or laptop); share your documents digitally for verification and even e-Sign documents (which is similar to self-attestation).
Naturally, facilitating KYCs is only one use that this digital locker could serve. There are already a host of institutions, including the UIDAI, the Road Transport and Highways Ministry, the Income Tax Department, various school boards, including the CBSE, and departments of various state and central government ministries that have registered with DigiLocker. Effectively, they agree to accept the digital copy (e-signed if necessary) in place of the physical ones. At a more basic level, having PAN cards, mark sheets, caste certificates, birth certificates, ration cards, etc. stashed away in a Digital Locker can protect such vital documents from the risk loss or damage and still keep them handy at your fingertips.
To read about how DigiLocker works, what benefits it renders and more, visit https://www.livemint.com/Money/nleNtlwIW7hgM5ogHYJ7AM/Explained-The-benefits-of-having-a-DigiLocker-account.html