Can Aadhaar be used for quick, online KYC? Brokerages await clarity

If the online process is put in place once again, then customer acquisition can become much faster, say brokerages

Brokerages are awaiting operational clarity on the use of Aadhaar for Know Your Client (KYC) purposes for signing up clients faster.

They earlier used the Aadhaar database to complete the KYC process online. Industry officials said that the on-boarding process became considerably longer after the 2018 Supreme Court judgment that stopped the use of Aadhaar numbers by companies and private entities. 

If the online process is put in place once again, as the market regulator — the Securities and Exchange Board of India (Sebi) — has attempted to do following a central government circular; customer acquisition will become faster, they said.

"A customer