Fourteen researchers from three apex institutions of the country – the Institute for Development and Research in Banking Technology (IDRBT), IIIT Hyderabad and IIT Bhilai, are building the next-generation digital identity platform.
Imagine not having to fill up a single know-your-customer (KYC) form before opening any bank or demat account or even for receiving money directly from the government in your digital wallet.
In the future, all your data could be stored on a blockchain-based platform and you could pick and choose exactly which data you want to part with for any entity to avail its financial services.
Fourteen researchers from three apex institutions of the country – the Institute for Development and Research in Banking Technology (IDRBT), IIIT Hyderabad and IIT Bhilai, are building the next-generation digital identity platform, an Aadhaar 2.0 of sorts. Supported by the RBI Innovation Hub, it will enable innovation in India’s financial space.
These institutions have received a funding of Rs 23 crore from the Ministry of Electronics and Information Technology (MeitY).
D Janakiram, director of the country’s apex banking technology research organisation, IDRBT, explained that a key component will be a machine learning-based video authentication tool.
“Once this platform gets evolved, I think it is going to become the basis for an auto-powered 24/7 available system for you to just finish your KYC requirements at any given point in time,” Janakiram said.
“You may be able to interact with this platform through multiple modes such as phone or ATM kiosk, where you show all your documents on video and it then gets stored in the system,” he said.
He pointed out that if a bank or any other entity requires KYC, they can interact with the system based on the customer’s consent.
Once this platform is built, he said it will fuel financial innovation as the system can have a provision of a wallet where the government can directly transfer money.
He said that in Aadhaar the biometric data collected acts as an identity proof of a citizen, but when it comes to availing certain financial services just Aadhaar is not enough. There could be more documents that could be required as part of the KYC process.
This system will serve as a one-stop solution for KYC requirements for all financial services requirements. The new platform is expected to be ready for transfer to financial institutions in around two years, he added.