Money & Banking

Enable digital onboarding of customers for regulated NBFCs: IAMAI to Government

Our Bureau Mumbai | Updated on April 14, 2020 Published on April 14, 2020

Representational image only   -  istock.com/Tzido

The Internet and Mobile Association of India (IAMAI) has appealed to the Government to enable digital onboarding of customers for all regulated non-banking financial services entities like prepaid instruments (PPI), Non-Banking Financial Companies (NBFCs) and lenders.

The digital onboarding (digital verification by submitting soft copies of documents) is to avoid physical interaction between the customer and employees of the entity, IAMAI said in a statement.

The association highlighted that physical Know Your Customer (KYC) is not feasible under the present circumstances and the same will continue until the Coronavirus pandemic in completely under control. This, in turn, means that many customers are unable to utilize the full range of financial services offered by the entities at times of the present crisis, due to the KYC restriction.

There are numerous users who are either resorting to these services for the first time under lockdown or are old users but never did full KYC. In both cases, an option of doing KYC digitally should be provided to them to access the services normally like before, it said.

At these times of social isolation and lockdown, all critical transactions are being conducted via digital. Users require digital payment instruments for paying for utilities like electricity and water, all e-commerce transactions for essential items among others.

The use cases for digital payments have increased manifold under the lockdown process and more users are resorting to such instruments to ease their transactional needs. Similarly, there exists technology and use cases for onboarding of lending, insurance, investments and other customers performing financial services digitally, it added.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on April 14, 2020
This article is closed for comments.
Please Email the Editor