Aadhaar e-KYC Service
In India,customer needs to submit identity & address documents to several agencies to get the work done & this process of customer identification is known as “Know Your Customer”
Aadhaar KYC API eliminates complex,time consuming operations and provides agencies an electronic, paper-less KYC experience
by Using KYC API, agencies can carry electronic identity verification using biometrics/OTP- One Time Password (based on their choice) and obtain a digitally signed (by UIDAI) electronic identity document for storing within their system. This makes entire process simpler and cost effective for both customers and agencies.
e-KYC has certain Requirements which are listed below:
- Need for KYC derives from membership in FATF/ATG for supporting AML/CFT initiatives
- PMLA(Prevention of Money Laundering Act) enacted in India along with KYC rules
- Basel III framework also requires banks to perform KYC
- A Government-issued photo ID is required for KYC
- Electronic KYC should have the ability to verify or provide demographic information and photograph
- latest UIDAI authentication provides capability to verify collected demographic and biometric data
- In order to address data-collection issues, photograph, and ease of use, a KYC architecture is proposed as an application of UIDAI authentication
Government Planned KYC Framework :
- SEBI(Securities and Exchange Board of India) has defined the concept of a KRA (KYC Registration Agency)
- Entities who take advantage of the electronic KYC (banks, brokerage houses, etc) are called KUA (KYC User Agency)
- Other regulators contemplating the use of KRAs
- The FM announced the creation of a central KYC repository in his Budget Speech (2012)
- For enabling pure electronic KYC for Aadhaar holders, a 3-tier KYC architecture is proposed comprising of KUA –> KSA -> UIDAI
API Data Flow and High Level Logic
Fig1.0 API Data Flow and High Level Logic
- KYC front-end application captures Aadhaar number and biometric/OTP(One Time Password) of resident and creates the encrypted PID block
- KUA creates the Auth XML using the PID block, signs it, and uses that to form KYC XML and signs it and sends to KSA
- KSA forwards the KYC XML to Aadhaar KYC API
- Aadhaar KYC service authenticates the resident and if successful responds with digitally signed and encrypted demographic and photograph in XML format
- Demographic data and photograph in response is encrypted with either KSA or KUA public key as defined in the Aadhaar server (CIDR)
- KSA sends the response back to KUA enabling paper-less electronic KYC
Note:KSA can also form KYC XML on behalf of KUA. In that case, KSA needs to sign it.
High Level API Logic:
- Validate XML structure
- Validates KUA code, KSA code, and ensure they are valid KUAs/KSAs
- Validates KUA/KSA signature
- Validates that txn namespace and “rc”
- Validates bio/otp flag to ensure it is “y”
- Invokes authentication service
- Validates “ra” attribute and ensures it matches “info” of Auth response
- If successful, reads demographic data and photo using getDemographics API (common search API)
- Create response XML and sign it
- Write KYC audit (minimal audit details in RDBMS and entire response in HBase) in all cases
- Encrypt the response (either with KSA/KUA key) and sends back
- Send notification to resident