Aadhaar based eKYC- A Game-changer

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With the government having informed the Supreme Court, that it will link every mobile number in India to the Aadhaar database by February 2018, the digitization of India is well and truly underway. It’s going to be a humongous task, but the government seems to have picked up the gauntlet in earnest. As of today, 35% of Aadhaar cards are linked with the respective mobile numbers, according to UIDAI.

What will be the implications of this?
First and foremost, your KYC (Know Your Customer) will become an instantaneous process with your mobile phone.
This will happen in the two following ways:
1.Through biometric authentication
2.Or a system generated One Time Password (OTP)
So next time your bank wants your KYC done, you just have to validate your fingerprint, peer into your mobile phone,click a selfie focusing on your iris and voila, the procedure would be done. This would be even faster than the OTP process that we have been familiar with for verification these days.

As of now, establishment like banks, telecom service providers etc., engage outsourced service providers to perform the KYC formalities. What will happen to these service providers? They are finding themselves jobless, beginning from now. And believe me, there are hundreds of them in India, employing thousands of people. Backend operations of various organizations dedicated to verification will become obsolete. They better look at different business in a world where intermediaries are no longer needed.

What will be the impact on our daily lives?
For starters, you will have to keep your Aadhaar number handy at all times (you may need it anytime for any transaction/identification). The span of our memory has to increase from ten digits (today’s mobile numbers) to twelve digits (Aadhaar numbers)

  • Waiting endlessly for police verification etc. for getting a passport made/renewed would become a thing of the past. In fact, if all goes well, the passport might become an irrelevant document.
  • Filling out long forms asking for personal information would no longer be needed for availing any service, just mentioning your Aadhaar number would suffice.
  • All status information about your consumption would be available on your mobile phone screen. If you have linked your Aadhaar number with all service providers such as electricity, gas, telephone, bank etc., you would be able to reduce the number of clicks that you require today to transact.
    • You would be able to pay them without having to go through an intermediate e-Wallet.
    • You could also see the exact household consumption of electricity in units, at any point in time.
    • You could also check the balance in your bank account on the go, without having to the specific app of your bank

We might get so used to using our Aadhaar number, that we might find it a pain to remember our mobile number and our email id separately.

So folks, brace for a time when your mobile number and email id merge into your Aadhaar number, not just yet but a few years from now.smiley

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