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Key Points

SEBI has now allowed intermediaries to use NPCI’s e-KYC Setu System for Aadhaar-based verification. This move complements the existing UIDAI framework for digital KYC. The system aims to simplify client onboarding in the securities market. SEBI highlights it as an additional mechanism to boost efficiency.

Key Points: SEBI Allows NPCI e-KYC Setu System for Aadhaar Verification

  • SEBI approves NPCI's e-KYC Setu for Aadhaar verification
  • New system complements UIDAI's existing KUA/Sub-KUA mechanism
  • Aims to streamline digital onboarding for securities market clients
  • NPCI-UIDAI collaboration enhances ease of doing business
1 min read

Registered intermediaries allowed to use 'e-KYC Setu System' of NPCI for Aadhaar based e-KYC authentication

SEBI permits intermediaries to use NPCI's e-KYC Setu System alongside UIDAI for faster Aadhaar-based digital verification.

"Registered intermediaries may use the facility of 'e-KYC Setu System' to perform digital KYC – SEBI"

Mumbai, June 30

Securities and Exchange Board of India (SEBI) on Monday allowed registered intermediaries to use 'e-KYC Setu System' of National Payments Corporation of India to perform Aadhaar-based e-KYC authentication for ease of doing business, the markets regulator said in a statement.

Under the present framework, registered intermediaries use e-KYC services of the Unique Identification Authority of India (UIDAI) in the securities market.

This service has been accepted as a valid process for digital Know Your Client (KYC) verification using KYC User Agency (KUA /Sub-KUA) mechanism and /or the Digilocker.

To further facilitate ease of doing KYC, it is stated that registered intermediaries can also use the 'e-KYC Setu System' of National Payments Corporation of India (NPCI) to perform digital KYC.

NPCI, along with UIDA,I has developed and implemented a system known as 'e-KYC Setu System' to enable digitisation of the customer onboarding.

"Registered intermediaries may use the facility of 'e-KYC Setu System' to perform digital KYC, as an additional alternate mechanism available to the them to carry out Aadhaar based e-KYC of their clients," SEBI said in the statement.

- ANI

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Reader Comments

P
Priya S
While I appreciate the convenience, I hope NPCI has strong data protection measures. Aadhaar data leaks have happened before. Security should be top priority!
A
Ananya R
As someone who recently opened a trading account, the current KYC process was such a headache. This new system sounds promising. Hope it works as smoothly as claimed.
V
Vikram M
Good initiative but implementation will be key. Many small brokers still struggle with basic tech infrastructure. SEBI should provide proper training and support.
S
Sarah B
Interesting development. As an NRI investor, I wonder if this system will eventually help simplify KYC for overseas Indians too? Currently the process is quite cumbersome.
K
Karthik V
NPCI has done well with UPI, hope they bring similar efficiency to KYC processes. One nation, one KYC should be the ultimate goal to reduce duplication.

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