MUMBAI: To promote further digitisation of finance and increase access of the unbanked to formal lending, the Reserve Bank of India needs to push for wider adoption of Aadhaar enabled electronic KYC verification for account opening and verification of transactions said Amitabh Kant, chief executive officer of NITI Aayog the premier think tank of the country.
Kant while addressing a conference on paperless banking organised by BankBazaar in Mumbai, said that there is a need to increase the limits on Aadhaar enabled OTP based authentication for different types of account opening.
“For savings accounts the limit is Rs 1 lakh and I believe that should be increased to Rs 10 lakh and that for loan accounts should be increased to Rs 6 lakh from Rs 60,000 currently,” said Kant. “It should be also allowed for disbursal of credit cards.”
Kant added that removal of paper based authentication would also help in reducing non performing assets for banks as in case of digital authentication there is no chance of forged documentations.
“There is a need to push for wider acceptance of digital signatures in the industry and acceptance of OTP based eKYC,” he said.