In a recent event, recharge facilitator, as well as e-commerce company Paytm, is diverting its focus towards newly introduced service Payment Banks which might hold an Aadhar-based client authentication system so as to upgrade its digital wallet thus converting the future of bank transactions completely electronic.
The respective measures will help the customers or say, its Payment Bank account holders to possess a digital wallet so that they may carry out transactionsmore than Rs. 10,000 per month thus enabling to have hassle-free banking facility as well as appropriate money managers. The following method termed as Know-Your-Computer systems through an electronic mode which happens to be based on Aadhar card.
An initiative under the India Stack scheme, Paytm bank account holders’ will go through client authentication system similar to that of Aadhar card system. Also, it will further help a third-party individual to use their card for appropriate authentication, digital signatures, and so on. The respective method of digital payment is basically from a unified interface, privacy checked and protected data sharing.
According to Vijay ShekharSharma, CEO Paytm,With eKYC, the Paytm payment bank will have a great start with an Aadhaar-linked savings account. It also helps us build superior AML (anti-money laundering) and fraud protection systems as each customer is biometrically verified.
Paytm’s eKYC works according to the instant verification of the customer’s identity from a nearby Payment Bank unit with the help of address and ID through fingerprints or iris scan which are automatically and immediately compared with Aadhar card database as well as authentications. It will also possess its customer’s e-sign prior seeking permission so that the entire process becomes paperless.
The respective foundation under which the entire process happens to move ahead, India Stack is a set of Application Program Interfaces (API) managed by Public organisationdeveloped by a spiritvolunteers with links to Digital India Initiative as well as JAM to fuel up innovation and entrepreneurship. On the other hand, API is a set of routines, protocols and tools for building software applications. It also specifies as how software component should interact when used in programming graphical user interface.
Regarding in principle payment bank licences from Reserve Bank of India, Paytm stood at 11th position among others like Vodafone, Bharti Airtel, Reliance Industries, and so on. Other entities also got permission to adhere Payment Bank for eKYC systems. Leveraging the benefits of Aadhar card would be positive notion for the growth of digital India along with keeping a foundation of technology resources thus capable of creating useful service for the masses.
As of now, Paytm is all set to upgrade its digital wallet from Rs. 10,000 to Rs. 1,00,000 transactions per month. Introducing eKYC to its segment will boost its existing customers to migrate to Bank whenever its gets in action.