Technology company Suvidhaa Infoserve is in talks with a large KYC (know your customer) Registration Agency (KRA) and a couple of large mutual fund houses for providing its latest technology for e-KYC (electronic KYC).
The technology developed by Suvidhaa is unique in itself and first of its kind in India which requires only Aadhaar number and biometrics (thumb impression) to get entire details about the customer within few minutes. Through this digitized process, the service providers like financial institutions, banks, mutual funds and stock broking firms do not require a cumbersome process of physical papers of KYC.
“Suvidhaa is in advanced level of talks with one large SEBI-empenalled KRA and a couple of large mutual fund houses to work as a facilitator of Aadhaar e-KYC,” Paresh Rajde, founder of Suvidhaa, said without divulging names considering sensitivity.
Suvidhaa backed e-KYA, an IPR driven technology, was developed with an investment of around Rs 6.5 crore. The company is envisaging earnings through this service along with other services provided to customers.
Engaged in digital services of remittances and payments, Suvidhaa has attracted investment from Shapoorji Pallonji Mistry. The company also securing three series of funding from globally acclaimed investors viz., Norwest Venture Partners (NVP), Reliance Capital (ADA Group), IFC, the World Bank Group and Mitsui & Co., Ltd. Suvidhaa is today the largest non-bank entity offering domestic remittance service in India with over a million transactions a month.
The company has also applied for Payments Bank licence to the Reserve Bank of India (RBI). With a footprint of over 80,000 touch points across India offering neighbourhood convenience to over 28mn unique customers annually, Suvidhaa today is one of the leading payments management company in India with remittances of over Rs 8000 crore annually.
The company’s Suvidhaa Aadhaar e-KYC is very simple. Once the Aadhar number and biometrics is punched into the system, they get verified from Unique Identification Authority of India (UIDAI) on real time basis.
“We are just a facilitator. KRAs are the custodians of data compiled of customers. Going forward our service can be used by KRAs on outsourcing basis for which we would become just a channelizing partner,” said Rajde
In October 2013, SEBI announced that it would accept Aadhaar e-KYC service of UIDAI as a valid proof of identity and address for opening accounts with brokerage firms, mutual funds, portfolio managers and other capital market entities. UIDAI is the Central government agency responsible for collection, registration and maintenance of data for Aadhaar card and issuance of the cards to citizens.
Riding on the Aadhaar e-KYC, Axis Bank launched Axis Bank – Suvidhaa Prepaid Card early this year.