Centre trials Aadhaar face authentication to simplify KYC for NRIs
What's the story
The International Financial Services Centres Authority (IFSCA) is trialing unassisted Aadhaar face authentication with four international jurisdictions. The move is aimed at simplifying the cross-border Know Your Customer (KYC) process for non-resident Indians (NRIs). The initiative is part of a broader effort to establish Gujarat International Finance Tec (GIFT) City as a global wealth management hub.
Digital onboarding
Effortless onboarding for NRIs with Aadhaar footprint
IFSCA chairman K Rajaraman announced the pilot at the Global Fintech Fest.
He said that if an NRI has an Aadhaar footprint, they will be able to onboard effortlessly.
The goal is to make the entire digital onboarding and documentation process paperless, without any need for courier or wet signatures.
This would enable overseas investors to digitally open accounts and invest seamlessly.
Global investment
Addressing challenges in cross-border investments
Rajaraman stressed that cross-border KYC and payments are two major challenges for NRIs looking to invest globally through the GIFT City platform.
He also revealed that banks in the International Financial Services Centre (IFSC) have been asked to set up wealth-management units.
Several banks, including HSBC and State Bank of India (SBI), have already started establishing such units for high-net-worth individuals (HNIs) with global operations and overseas family offices.
Market expansion
Tapping into overseas Indians's potential
Rajaraman said the push is aimed at tapping into the huge pool of overseas Indians.
He noted that NRIs remitted over $140 billion to India last year, and a similar amount could be invested through global markets.
The banking ecosystem at GIFT IFSC is also expected to grow, with total bank assets in the center likely to reach around $200 billion by fiscal year's end.
Asset acquisition
Financing large assets through IFSC
Rajaraman has also revealed that the IFSC is increasingly witnessing financing for large assets.
Indian banks are participating in loan syndicates and taking a share of the financing.
This growing comfort among lenders has opened up an opportunity for the IFSC to facilitate asset acquisitions such as aircraft and ships.