New eKYC rules may become problematic for companies using eSign
Bhubaneswar: The recent mandate by the Unique Identification Authority of India (UIDAI) regarding charging of eKYC is set to become more problematic for these companies if they already use electronic signatures (eSign).
As per industry experts, early-stage companies who use eSign for financial documentation or for human resource onboarding.
As per the new directive, Aadhaar authentication services shall be charged at Rs 20 (including taxes) for each e-KYC transaction and Rs 0.50 (including taxes) for each Yes/No authentication transaction from requesting entities. Additionally, each eSign could be charged at Rs 25. Previously, eSign by itself was charged at Rs5 per transaction.
At a technical level eSign, which allows multiple parties to come together and sign a document electronically, uses eKYC as a means of authenticating the parties as per provisions in the Information Technology Act, 2000.
With operation costs increasing for businesses who deal with authenticating documents, the brunt might eventually be borne by the customer.