UIDAI Implements Significant Reduction in e-KYC License Fees 

The Unique Identification Authority of India (UIDAI) has recently made a significant announcement that will benefit entities involved in authentication and e-KYC processes. In a move aimed at promoting digital inclusion and ease of doing business, UIDAI has decided to review and reduce the license fees for Authentication User Agencies (AUAs) and e-KYC User Agencies (KUAs) based on transaction counts and the capital structure of the entities involved. This move comes in response to feedback from organizations that perform fewer authentication transactions and have a smaller capital structure.

E-KYC has emerged as a crucial process in the digital era, enabling seamless and secure verification of an individual’s identity and address information. It has revolutionized the way businesses onboard customers, open accounts, provide services, and comply with regulatory requirements. By reducing the license fees associated with e-KYC, UIDAI aims to encourage more organizations to adopt this technology and enhance the accessibility and affordability of their services.

Previously, UIDAI was charging a license fee of 20 lakhs for a duration of 2 years for AUAs and KUAs. However, with the revised policy, the fees have been adjusted to accommodate different transaction volumes. Here are the new license fee structures:

• AUAs handling up to 5 lakh transactions annually will be charged Rs. 5 lakhs for a 2-year period.
• AUAs managing a transaction volume between 5 and 20 lakhs per year will be charged Rs. 10 lakhs for a 2-year period.
• AUAs conducting more than 20 lakh transactions per year will be charged Rs. 20 lakhs for a 2-year period.

This new fee structure is designed to provide flexibility and fairness in terms of financial obligations for different entities based on their transaction volumes.

In addition to the revised license fees, UIDAI is also introducing a provision to grant newly onboarded AUAs free access to the pre-production environment for the first three months. However, it is essential for these entities to transition into the production environment within the given time frame. Failure to do so will result in the requirement to pay the pre-production license fee of Rs. 5 lakhs.

Furthermore, during subsequent renewals, if an entity is found to have performed a higher number of transactions than initially stated, the differential in the license fee will be recovered along with interest.

It is important to note that these changes in the license fee policy will come into effect from July 1, 2023. This announcement is expected to have a positive impact on organizations, especially those with lower transaction volumes, as it reduces the financial burden associated with obtaining and maintaining the necessary licenses for authentication and e-KYC processes.

UIDAI’s decision to review and adjust the license fees demonstrates their commitment to promoting inclusivity and supporting entities with different transaction volumes and capital structures. By offering a more tailored and affordable fee structure, UIDAI aims to encourage wider participation and adoption of its authentication and e-KYC services across various sectors. 

Entities involved in authentication and e-KYC processes should take note of these changes. The reduced fees and flexibility provided by UIDAI present an excellent opportunity for organizations to leverage these services more effectively, contributing to a streamlined and secure digital identification ecosystem in India. 

For further inquiries or additional information, please feel free to get in touch with us.

At JISA Softech, we specialize in providing Aadhaar related solutions such as E-KYC, Aadhaar Data Vault, Authentication and data security solutions. If you are interested in learning how your enterprise can integrate these services, please don’t hesitate to contact us. You can reach us by calling +91-9619222553 or sending an email to sales@jisasoftech.com.