It has finally happened. The Department of Telecom (DoT) has finally ordered telecom operators in India to discontinue using eKYC process via Aadhaar to sign up new users to their network.
This order comes after the Supreme Court in its judgment last month clearly stated that private entities should not be allowed to use Aadhaar for e-verification or getting new users onboard. The circular goes on to state that telcos will be provided with an alternate process to digitally verify and sign up new customers.
In a letter to the telecom companies, UIDAI said: “TSPs (telecom service providers) are hereby directed to submit by 15 October an action plan/exit plan to the Authority for closure of use of Aadhaar based authentication systems.”
The importance of Aadhaar for e-verification or eKYC of users has become a routine exercise for various private entities, but none more so than the likes of Reliance Jio and Airtel. These companies have flourished under the current government’s Digital India movement, which has smartly allowed them to operate within the ambit of Aadhaar.
With more than 200 million users each, both Reliance Jio and Airtel have now suffered a big blow to their business models, as the eKYC process by private companies (telcos) via Aadhaar has been scrapped.
Couple of weeks back, DoT proposed to offer a mobile app that it claims will be fully compliant with the SC judgement.
If it comes through, a person will be required to submit his/her photograph, along with latitude and longitude and time stamp of when the photo is captured. This will be further facilitated with a photo ID from Aadhaar, voter ID or possibly passport, which will also be captured.
“The telecom industry, vide its joint representation date 5.10.2018 has suggested an alternate digital process for KYC of mobile subscribers which will work via live photo of subscriber and scanned images of proof of identity.”Department of Telecom
This process will be initiated by a SIM agent, who will be authenticated via OTP on your registered mobile number and only then will a new SIM be issued.
The new process for KYC needs to be in place by 5 November, as highlighted in the DoT circular.
“Accordingly, all telecom service providers are directed to ensure readiness of their systems and offer the Proof of Concept of the proposed digital process by 5.11.2018 for approval.”DoT
Having said that, DoT has cheekily given telcos a ray of hope by stating that any user voluntarily giving Aadhaar for eKYC can be accepted by the operator.
“The Licensees may accept the copy of physical Aadhaar or e-Aadhaar letter having masked or unmasked Aadhaar number as proof of identity document, if offered voluntarily by the subscriber.”DoT
And finally, the paperwork instructs the telcos to remove the column to write the Aadhaar number from the form used to acquire new customers.
“Licensee shall also delete the column of writing Aadhaar number (optional entry) on the Customer Acquisition Forms for issuing of new SIM.”DoT
It’s heartening to see the DoT complying with the SC judgement and telcos will have no option but to go ahead with the orders. Banks are yet to be given similar instructions, asking them to stop using Aadhaar for opening new accounts.
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