Offline Aadhaar Update: Identity card killer! Soon, Open bank account, buy insurance with QR Code
Soon, you may not need any identity card (I-Card) to open a bank account!
Soon, you may not need any identity card (I-Card) to open a bank account! Months after the Supreme Court ruled that banks cannot make Aadhaar mandatory for opening bank account, the government and the Reserve Bank of India (RBI) are said to be mulling on an alternative, which will do away with the need of submitting physical i-cards.
Several reports say the Central government and the RBI are working on a plan to open QR code-based accounts. With this, the customers will have to use an "offline Aadhaar" verification system. The 'offline Aadhaar' will operate on QR codes, instead of biometrics for Aadhaar-based verification, which has been necessary for opening bank account, or using digital payment wallets and purchasing insurance policy.
Reports say the RBI has already held 2-3 meetings with the Aadhaar regulatory body - Unique Identification Authority of India (UIDAI). Printing Aadhaar QR code digitally signed by the UIDAI is being considered as a reliable alternative to conventional I-cards like ration card, voter ID, driving licence, bank passbook, etc.
To implement the Aadhaar QR code, UIDAI suggests an amendment to the KYC master circular to comply with the Supreme Court verdict. Not just people, the QR code-based eKYC will immensely help fintech companies, which were left in the lurch following the SC order. These companies were heavily dependent on Aadhaar-based eKYC for enrolling customers.
The apex court had said in September that Aadhaar was not mandatory for opening bank accounts or buying a SIM card.