The RBI has asked the acquiring bank to carry out due diligence of all ATOs before onboarding the AePS Touchpoint Operator (ATO), which is the same as the one followed while acquiring a customer, as per the directions.
Mumbai: The Reserve Bank on Friday issued directions to banks on onboarding Aadhar Enabled Payments System (AePS) touchpoint operators to enhance security.
The RBI has asked the acquiring bank to carry out due diligence of all ATOs before onboarding the AePS Touchpoint Operator (ATO), which is the same as the one followed while acquiring a customer, as per the directions.
If the due diligence of ATOs has already been done in their capacity as business correspondent/sub-agent, then the same may be adopted. Directions are applicable from January 1 next year.
In cases where an ATO has remained inactive for a continuous period of three months, the acquiring bank will have to carry out KYC of the ATO before enabling him or her to transact further, the RBI said.