Government & RBI in talks to allow ‘Offline Aadhaar’

Centre and RBI are in talks to bring into use code-based ‘Offline Aadhaar’.

New Delhi: In wake of latest SC directive, RBI may soon direct nationalised banks to implement use of code-based ‘Offline Aadhaar’. Here QR code will be scanned and used instead of previously used biometrics e-KYC for account access and operations.

This move is dubbed to be significant as financial organisations have been pushing the Government for this. The SC has ruled that Aadhaar-based verification could not be implemented by private financial organisations.

The printout with the QR code is “digitally signed” by UIDAI and hence can be considered much more trustworthy than PAN card, ration card, DL.

But since the use of offline Aadhaar has to be facilitated by the RBI, the central bank needs to bring out a circular and has held 2-3 rounds of discussions with UIDAI.

The Aadhaar agency suggested that the KYC master circular be amended. This will ensure that the rules are in sync with the SC order.

But the RBI’s earlier circular mandating the use of Aadhaar is yet to be implemented by all banks. Hence they need to tweak their systems before the new mandate comes in.

Also Read: RBI’s excess capital could be used by state-run banks: Arvind Subramanian


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