InvestorQ : Has National Payments Corporation of India(NPCI) approved Aadhaar based authentication for recurring payments?
Crowny Pinto made post

Has National Payments Corporation of India(NPCI) approved Aadhaar based authentication for recurring payments?

Answer
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Anisha Awate answered.
3 months ago


Earlier in 2019, the Supreme Court has passed a verdict prohibiting private enterprises from accessing the biometric database. However, in the last week of May, it has announced that e-sign based electronic mandates to be started from 1 June 2020. This means now Aadhaar based authentication shall be allowed for making payments online for their SIPs, Equated monthly installment, standing orders to banks by giving orders to the bank/consent through Aadhaar-based OTP.

This step in payments shall be a booster for financial inclusion and remote consumer onboarding process since this would be the easiest consent flow developed so far. However, to avail the facility it is important for the consumers to update their mobile number with the UIDAI database so that they could receive OTP. National Payments Corporation of India(NPCI) has instructed the banks to bring the process to live as soon as possible.