UIDAI implements significant reduction in e-KYC license fees


The Unique Identification Authority of India (UIDAI) recently made an important announcement that will benefit entities involved in authentication and e-KYC processes. In a bid to promote digital inclusion and ease of doing business, the UIDAI has decided to review and reduce the licensing fees for Authentication User Agencies (AUAs) and e-User Agencies. -KYC (KUA) depending on the number of transactions and the capital structure of the company. entities involved. The move follows feedback from organizations that perform fewer authentication transactions and have a smaller capital structure.

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

Earlier, UIDAI charged a license fee of 20 lakhs for a duration of 2 years for AUA and KUA. However, with the revised policy, fees have been adjusted to accommodate different transaction volumes. Here are the new license fee structures:

  • AUAs processing up to 5 lakh transactions per year will be charged Rs. 9,999. 5 lakhs for a period of 2 years.
  • AUAs handling a transaction volume between 5 and 20 lakhs per year will be charged Rs. 10 lakhs for a period of 2 years.
  • AUAs carrying out more than 20 lakh transactions per year will be charged Rs. 20 lakhs for a period of 2 years.

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

In addition to the revised license fees, the UIDAI is also introducing a provision to grant newly onboarded AAUs free access to the pre-production environment for the first three months. However, it is essential that these entities transition to the production environment on time. Otherwise, you will have to pay the pre-production license fee of Rs. 5 million.

In addition, during subsequent renewals, if it turns out that an entity has carried out a greater number of transactions than initially planned, the difference in fees will be recovered as well as interest.

It is important to note that these changes in the license fee policy will come into effect on 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 license fees demonstrates its commitment to promoting inclusiveness and supporting entities with different transaction volumes and capital structures. By offering a more suitable and affordable pricing 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 offered by UIDAI present a great opportunity for organizations to operate these services more efficiently, thereby contributing to a streamlined and secure digital ID ecosystem in India.

For any additional requests or additional information, do not hesitate to contact us.

HAS JISA Softech, we are specialized in providing Aadhaar related solutions such as E-KYC, Aadhaar Data Vault, authentication and data security solutions. If you would like to know how your business can integrate these services, please do not hesitate to contact us. You can reach us by calling +91-9619222553 or emailing sales@jisassotech.com.

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