Now, open a bank account through Aadhaar without

paperwork
Similar arrangement on cards for pension schemes, says Nilekani
BS Reporter | Mumbai
October 25, 2013 Last Updated at 00:48 IST

The Unique Identification Authority of India (UIDAI) has enabled a feature that would allow anyone
with an Aadhaar number to open a bank account, without any paperwork.
Axis Bank was the first lender to start the electronic know-your-customer (e-KYC) facility, which would
facilitate Aadhaar-registered individuals to step into a branch and open an account, merely by
providing his/her unique identification number, after which the persons fingerprints would be
scanned.
On Thursday, UIDAI chief Nandan Nilekani launched the e-KYC facility at the Axis Bank headquarters
here. Initially, the facility is available at 1,000 branches of the bank. By the end of this month, Axis
Bank would extend the facility to about 2,000 branches.
Nilekani parried questions on extending the facility to other banks. He said the idea was to expand
the e-KYC facility, adding it was possible to secure insurance cover and apply for mutual funds
through this. Talks are on to include pension schemes in the programme, too.
Axis Bank would connect with UIDAI through an authorised service agentusually, a payment
gatewaywhich would, in turn, connect with the UIDAI database, Nilekani said.
Shikha Sharma, managing director and chief executive of Axis Bank, said while opening bank
accounts, a key challenge for customers was providing proof of address and identity, as well as
physical copies of documents. She added e-KYC simplified this process and provided better customer
experience.
The facility was safer compared to the current practice of providing photocopies of documents,
Nilekani said, adding all work happened electronically, at the back-end. Fundamentally, all the
infrastructure is falling into place for creating a much more electronic, a much more digital-cash kind
of an economy, he said, adding this had long-term ramifications, including making the economy
cashless.
So far, UIDAI, set up four years ago, has rolled out 460 million Aadhaar numbers. It was targeting 600
million numbers (half the countrys population) by early next year, Nilekani said.
Ensure service providers adhere to all regulatory requirements: RBI to RRBs
The Reserve Bank of India (RBI) has asked regional rural banks (RRBs) to ensure the service providers
(including another bank) adhere to all regulatory requirements. RRBs may necessarily enter into

agreement with the service provider that the infrastructure and applications are made available for
audit / inspection by the regulators of the country, said RBI.
The central bank said RBI and Nabard should have access to all information resources that are
consumed by RRBs, though the resources are not physically located in the premises of banks.
Further, RRBs have to adhere to the relevant legal and regulatory requirements relating to
geographical location of infrastructure and movement of data out of borders. According to RBI while
consuming services provided by other banks or service providers, it may be ensured that all aspects
relating to privacy, confidentiality, security and business continuity are fully met.

Source: http://www.business-standard.com/article/finance/now-open-a-bank-account-throughaadhaar-without-paperwork-113102400919_1.html

India Infoline News Service/ Mumbai 17:24 , Oct 24, 2013

The bank plans to extend the e-KYC facility to over 2000 branches across India by the
end of October 2013.

Axis Bank launched first of its kind "e-KYC' facility in 1000 branches across 400 centres.
The bank plans to extend the e-KYC facility to over 2000 branches across India by the end of October
2013.

Source: http://www.indiainfoline.com/Markets/News/Axis-Bank-launches-e-KYCfacility/5806510402