On May 29, 2019 the Reserve Bank of India updated the master direction on KYC guidelines for regulated entities.
On May 29, 2019 the Reserve Bank of India updated the master direction on KYC guidelines for regulated entities. The updates in the KYC process were mainly targeted at adhering to the Aadhaar and Other Laws Ordinance that was passed by the Cabinet in March 2019.
What is Aadhaar Masking?
The masked Aadhaar option hides the first eight digits of your Aadhaar number, keeping the last four digits readable. It can be shared without revealing any sensitive information about yourself. As a result, the number of user scams is reduced. As there is always a risk of misuse of personal information when dealing with Aadhaar information, the UIDAI introduced Masked Aadhaar ID to add another layer of security. Masked Aadhaar can be used for eKYC in situations where providing the Aadhaar number is not required. It just displays your Aadhaar’s last four digits.
Key Features of Aadhaar Masking
- It is a 12-digit unique ID number that can be shared without any risk involved.
- The first eight digits of your Aadhaar number get replaced by asterisks or appear as “XXXX_XXXX”, while the last 4 digits remain as it is. Other information such as name, DOB, gender, address, and QR code also remains the same.
- Customers can download this masked version of their Aadhar ID via the password-protected electronic Aadhar in a completely legal manner.
Aadhaar Masking regulations
UIDAI is in charge of Aadhaar and related regulations, which are overseen by a number of authorities including the RBI, IRDAI, TRAI, and SEBI. Every business that collects Aadhaar cards is required by the regulations to hide the first eight digits of the Aadhaar number once the KYC is done.
The RBI’s master guidance on KYC rules was amended in May 2019. One such modification mandates that RBI-regulated institutions mask all clients’ AADHAAR cards from the AADHAAR image as part of the KYC procedure.
What has changed?
One such update makes it mandatory for RBI Regulated Entities to mask or blackout the Aadhaar number of all customers from the Aadhaar image as part of the KYC process.
What does it mean for Financial Institutions?
Aadhaar continues to be the most commonly submitted document in the KYC process. Financial Institutions now need to mask Aadhaar numbers on all the customer images that they store.
How to become compliant?
HyperVerge’s Automated Aadhaar Masking feature can partially or completely mask the Aadhaar number on an image in real-time. This has been part of our Fintech Platform since Jan 2019 and can be used for all new and existing customer records.
Get Started for Free!
Are you an existing client? This service is available for all existing clients as part of the product suite. Please get in touch with your relationship manager or drop us an email at email@example.com to learn more.
Not an existing client? You too can get started masking your customer’s records. You can book an appointment with our expert and we would be happy to help you. You can also drop us an email at firstname.lastname@example.org to learn more.
What is HyperVerge Fintech Platform?
HyperVerge’s Fintech Platform is the market leader in Asia and is used by leading consumer lenders, banks and telecom companies such as Reliance Jio, FE Credit, KrazyBee, MoneyTap, SlicePay for Digital KYC, Fraud check and Income check. This platform leads the market in both volumes and accuracies.
- Proven at scale and currently processes more than 25M customers a month
- Holds top accuracies in the market for technologies such as ID card Digitisation, FaceMatch, Photo based liveness.
- ISO 27001 certified
- Loved by our customers