IFSCA Starts Pilot for Aadhaar Face Authentication in Cross-Border NRI KYC

The International Financial Services Centres Authority (IFSCA) is testing unassisted Aadhaar face authentication with four international jurisdictions to simplify cross-border know your customer (KYC) for non-resident Indians (NRIs), as per a Business Standard news report. 

IFSCA Chairman K Rajaraman said an NRI with an Aadhaar footprint would be able to complete the onboarding process without assistance. The pilot is to allow overseas investors to open accounts digitally and invest through the GIFT City platform. 

Paperless KYC Process 

The proposed process would cover digital onboarding and documentation without paper-based formalities. Rajaraman said the aim is to remove the need for courier services and wet signatures. 

He identified cross-border KYC and payments as two areas that need to be addressed to support NRIs investing globally through GIFT City and investing in India. The comments were made at the Global Fintech Fest. 

Banks Set Up Wealth Units 

IFSCA has asked banks operating in the International Financial Services Centre (IFSC) to establish wealth-management units. HSBC and State Bank of India have already started setting up such units, according to Rajaraman. 

The units are intended to cater to high-net-worth individuals (HNIs) with global operations and family offices based overseas. The initiative is linked to efforts to attract more overseas Indian funds through the financial centre. 

$140 Billion NRI Remittances 

NRIs remitted more than $140 billion to India last year, Rajaraman said. He indicated that a similar pool of money could potentially be invested through global markets. 

The banking sector at GIFT IFSC is also expected to expand. Total bank assets in the centre are projected to reach around $200 billion by the end of the financial year, compared with more than $143 billion currently. 

42 Banks Operating in IFSC 

There are 42 banks operating in the IFSC, including 21 foreign banks. The centre is also seeing financing activity for large assets, with Indian banks participating in loan syndicates and taking part of the financing. 

Rajaraman said this has created scope for the IFSC to support the acquisition of assets including aircraft and ships. 

Read More: Government Launches DILRMP 3.0; ₹565.5 Crore Set Aside for Integrated Land Data! 

Conclusion  

The Aadhaar face authentication pilot is being tested alongside measures covering cross-border payments and wealth management for overseas Indians. 

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