In a much-appreciated move, the Unique Identification Authority of India (UIDAI) has announced a significant reduction of e-KYC authentication license fees for AUAs and KUAs w.e.f. 1st July 2023.
Currently, UIDAI charges AUAs/KUAs a flat license fee of 20 lakhs for 2 years. This is all set to change as UIDAI has now aligned the license fees to the actual number of e-KYC transactions processed by an AUA/KUA.
As per the new regime, the revised license fees will be calculated as follows:
1) For AUAs/ KUAs processing Up to 5 Lakh transactions per year: License fees of Rs. 5 lakh for 2 years.
2) For AUAs/ KUAs processing between 5 lakh – 20 Lakh transactions per year: License fees of Rs. 10 Lakhs for 2 years.
3) For AUAs/ KUAs processing Above 20 Lakh transactions per year: License fees of Rs. 20 Lakhs for 2 years.
Additionally, this notification also enlists some other important points which are as mentioned below
A. Newly onboarded AUAs/KUAs will be granted free access to their pre-production environment for the first three months, provided such AUAs/KUAs move to the production stage within the prescribed time frame.
B. If the entity fails to move into production within three months of the grant of free access to the pre-production environment, it will have to pay a pre-production license fee of Rs. 5 Lakhs which will be valid for a period of 3 months.
C. Entities will be on-boarded based on the transaction estimates provided by them and the license fee shall be charged as per the applicable slab. At the time of renewal of the license if the entity is found to have processed a higher number of transactions, then the differential amount (i.e., the difference between the applicable license fee and the license fee levied initially) will be charged along with an interest of 18% per annum.
D. If the entity has processed a lesser number of transactions compared to the initially submitted transaction estimates no benefit of the lower slab will be extended.
As India’s leading Aadhaar-based Digital Identity Solutions company, at ECS we wouldn’t have been more happier about these new announcements. We are confident that this announcement will provide a significant boost to organisations looking to integrate e-KYC processes to streamline their customer onboarding experience.
Feel free to reach our colleague Amit Joshi on 9820875525 / 7208155528 or email him at amit@eastcs.com if you have any questions or if you’d like to learn how ECS can help you in your e-KYC journey.
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