Paytm shall now be using the Aadhar based client authentication system
Now that electronic and online mode of payment has been initialized by the government, it has become really essential for the people to utilize the Aadhar card. The usage of Aadhar card was not so much important for people previously. But now with the demand of Aadhar card in railways and for making payment through Paytm, it has become mandatory for people to utilize the Aadhar card. So what will be the use of Aadhar card in Paytm payments? This article is going to clear it out.
- What is the procedure?
Paytm has launched the Aadhar based application that will be really essential for updations of the e-wallet system for the customers. This will be created in banks and will be enabled as and when the demands of customers arise to carry out the transactions which are more than Rs 10000 a month. Also, he Aadhar card is going to initialize the e-eKYC. This is a part of the initialization known as the India Stack. This will allow the third party entities in making the Aadhar card for authentication of digital signatures. This is a complete private and protected sharing and also a unified payment interface.
- A better and safer approach
With the e-KYC you will have instant verification of the customer by the fingerprints or the iris scans which are compared with the biometrics that is recorded in Aadhar database. The authentication is done immediately and after that the e-sign of the customer is utilized for the final confirmation of payment. The entire process is paperless and this is why it is completely eco-friendly.
With e-KYC being available easily, the payments can be made faster and smoother. This is a great start with Aadhar Linkage. This is going to protect money laundering and enhance the protection for customers because all the transactions are biometrically verified. The India Stack has been working really well for the benefit and easy implementation of the eKYC and e-Signatures. And Aadhar will be the foundation of it.
- A solid ground for using e-KYC
There are a lot of organizations that got the option of using the e-Verification process and Paytm is one of them. A few weeks ago, it was announced that Reliance Jio sim will also be activated in a similar manner through the e-KYC process by Aadhar card, finger print verifications and digital signatures. According to the reports, this e-verification has made the process easier and with the two big business organizations like Reliance and Paytm, using the Aadhar based e-verification, offers a great commitment to Aadhar. This has been stated by Nandan Nilekani, the co-founder of Infosys and former chairman of UIAI that issues Aadhar number to the Indian residents.
- Increase of payment limit
It was also explained that Paytm will be benefitted with the eKYC once the payment system goes live. Most of the Paytm wallet has less than 10,000 rupees in e-wallet where the customer authentication has not yet been done. Now those customers are opting for the migration along with the banks and Paytm. But the problem is, a KYC is essential. And this is why the Paytm is upgrading the payment limit. Previously the limit was till Rs 10000. But now this will be increased to a limit of Rs 1 Lakh. But the 1 Lakh will be offered for those individuals who already have the KYC. Thus, it will be better for you to make use of the Aadhar card for the verification as soon as possible. So that when the payment system goes live, the customers will be able to simply migrate to the bank. Paytm is now targeting the attainment of 25 million additional KYC customers in the next year.
|SL NO||Facts to Know||Brief details|
|1.||Beneficial effects of e-verification||Protection against fraudulent money transactions.|
|2.||Estimated tome of initialization||2017|
|3.||Verification process||Biometric and instant verification|
|4.||Verification details||Address, iris scan, finger print scan|
|5.||Initiative continued by||Infosys and UIAI|
|6.||India Stack||An Application Program Interface managed by public organization|
|7.||Principle payment bank license issued by||Reserve bank of India|