Post the Supreme Court rulings, Indian insurers will be allowed use Aadhaar Card for eKYC(Know your customer) with the condition that they `mask’ the 12 digits on the card and only use Quick Response (QR) Code.
The insurance regulator will issue new norms on how to use the Aadhar Card shortly after having discussed the matter with Unique Identification Authority of India(UDAI).
Since the verdict, the UIDAI has clarified that service providers can also use offline verification tools like eAadhaar, masked Aadhaar and QR code that leverage the unique ID without authentication or any access to biometrics.
“On the basis of our consultation with the (UDAI), we will allow the use of Aadhar Card as long as the insurer mask the 12 digit no and only use the Aadhar Card's QR code. We will issue new guidelines on the issue soon ,’’said a senior official of the IRDAI.
Earlier the SC in a landmark judgment had said, while Aadhaar would remain mandatory for filing of IT returns and for allotment of Permanent Account Number (PAN), it would not be mandatory to link Aadhaar to insurance policies, bank accounts and phone connections.
The IRDAI before SC rulings had made linking of Aadhaar number with insurance policies mandatory, and had also asked insurers to comply with the statutory norms.
The QR codes are "digitally signed" by UIDAI making it a more reliable document than the other documents such as a ration card, driving license or voter ID. It .
includes details like name, address, photo, DOB, and can be used for offline user verification without the need to enter 12-digit Aadhaar number.
In April this year UIDAI introduced an offline Aadhaar verification process that is done through a QR code instead of feeding in the citizen's biometrics details.
The government and the Reserve Bank of India (RBI) are now mulling over the use of this QR code by the banks for opening the banking accounts.