Following the RBI’s announcement, which allows NBFCs, Payment System Providers and Payment System Participants to apply for KYC User Agency or sub KUA license and offer eKYC services to customers, Fintechs and startups are welcoming the new regulation. Please find below view of UK & India’s largest banking workflow automation firm Tide and India’s leading AI powered eKYC startup Signzy on this development –
Gurjodhpal Singh, CEO, Tide (India), said "RBI's recent decision to allow NBFCs, Payment System Providers and Payment System Participants to use for eKYC for onboarding customers is a welcome move for the Fintech ecosystem. This will promote digitisation, resulting in a forward thinking approach to ensure fast delivery of financial products in the sector and thus improve experience for many customers who had been facing a lot of issues. This is one of the most positives moves for players in the ecosystem, and will help make the onboarding journey less bumpy for customers."
Arpit Ratan, Co-founder and Chief Business Officer, Signzy, said “A truly democratic move to power NBFCs, payment system providers and participants to make the digital journey of customers faster, simpler and secure. Over the last two years RBI’s has been working to create a more enabling and compliant digital ecosystem that helps non-bank entities play a more participatory role in digitisation of financial services. Apart from payments, customers are increasingly preferring smartphones to access several other financial services like insurance, lending, business banking, payroll, alternate investments and this requires fast tracking of onboarding processes to improve customer experience and increase access. Given that RBI has lately been warning of frauds owing to improper KYC processes, providing a KUA license will definitely stem such activities and increase customers’ trust in non-banking entities which are working hard towards offering affordable and accessible financial services on the go.”
