In December 2018, the Cabinet had approved amendments to the Prevention of Money Laundering Act (PMLA), the Telegraph Act, and the Aadhaar Act intended to pave way for Aadhar-based customer authentication in cases where the customer explicitly opts for it.

The Bill was introduced in the Parliament yesterday. The key highlights of the bill are:

  1. Allows banks, telcos, and ISPs to do Aadhaar-based authentication; or
  2. Allows offline Aadhaar-based verification; or
  3. Allows use of passport as an OVD; or
  4. Use of any other valid Central Government identification as an OVD

Essentially, the Bill clears the way for Aadhaar e-KYC, Aadhaar offline KYC, and KYC through passport or other OVDs, depending on the customer's choice.

Our legal counsel Bhavin Patel and Hemant Krishna V of Bayside Advisors give more details on the Bill and its implications.

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