UIDAI Cuts Aadhaar Authentication Charges To Rs 3: Details Inside

The Unique Identification Authority of India (UIDAI), has reduced the cost of Aadhaar authentication charges. The fees have been reduced from Rs 20 to Rs 3 per instance according to the circular of UIDAI. CEO of Unique Identity Authority of India Saurabh Garg stated at the NPCI-IAMAI Global Fintech Fest that "the potential of leveraging Aadhaar in the financial technology sector is immense." He further added that "We have slashed the rate from Rs 20 per authentication to Rs 3 and the objective has been to ensure that different agencies, entities should be able to use the power of digital infrastructure which has been created by the state that needs to be used to provide people with ease of living with dignity. Till date, more than 99 crore eKYC has been done using Aadhaar system."

He also said that "I think it gives a cost-effective and non-repudiable solution to fintech companies to onboard new customers. That is where the power lies and KYC of the Aadhar provides a lifetime and reusable identity which is the power of the Aadhaar system. UIDAI does not share biometrics with anyone and expects all its partners to maintain the same level of security and privacy as the authority does."

"The draft Aadhaar (Pricing of Aadhaar Authentication Services) Regulations, 2021 have been drafted on the basis of decisions taken by the UID Authority in its meeting dated 14.09.2021. A press release was published by Press Information Bureau on 15.09.2021 conveying the decision of the Union Cabinet on a number of structural and process reforms in the Telecom sector inter alia revising E-KYC rate to One Rupee. Hence, the final rates of Aadhaar e-KYC for the Telecom sector will incorporate this decision," UIDAI said in a press release.

Pricing of Aadhaar Authentication Services:

The new regulations made by UIDAI may be called the Aadhaar (Pricing of Aadhaar Authentication Services) Regulations, 2021 (No. of 2021). The new charges of Aadhaar authentication services are as follows according to UIDAI:

(a) Aadhaar authentication services shall be charged @ Rs. 3 (including applicable taxes) and Rs. 0.50 (including applicable taxes) for each successful Aadhaar e-KYC transaction and each successful Yes/No authentication transaction respectively from requesting entities.

(b) Each failed, but chargeable Aadhaar e-KYC transaction or Yes/No authentication transaction shall be charged @ Rs. 0.50 (including applicable taxes) per such transaction from requesting entities.

(c) Authentication transactions done by or on behalf of the Central and State Government Ministries/ Departments, for notified services, transfer of benefits and subsidies, shall be exempt from Authentication transaction charges.

(d) The above charges shall be in addition to the License fees and financial disincentives, as applicable.

(e) Details of the transaction error codes and its charges shall be issued separately.

(f) The Authentication transaction charges (for both Aadhaar e-KYC and Yes/No transactions) as in Regulation 2(1) above shall be revised every two years by linking it with the Consumer Price Index (CPI) and rounding it to the nearest 10 paisa.

Discontinuation of authentication and e-KYC services:

(1) If an existing requesting entity [except those exempt under Regulation 2(2) above], continues to use Aadhaar authentication services beyond the date of publication of these Regulations, it shall be deemed to have agreed to the specified authentication charges. The entities shall be required to deposit the authentication transaction charges within 15 days of issuance of the concerned invoice based on the usage. The delay in payment beyond 15 days shall attract interest compounded @ 1.5% per month and discontinuation of authentication and e-KYC services.

(2) In case a requesting entity does not wish to pay authentication transaction charges, it shall discontinue the use of Aadhaar authentication services and intimate its decision to the UIDAI immediately, and it shall surrender its access to the authentication facilities as per Regulation 23 of the Aadhaar (Authentication) Regulations, 2016. However, the transaction charges as applicable till the date of deactivation of access to authentication services shall have to be paid.

Source: UIDAI