Researchers working on blockchain-based digital ID system to improve India’s financial landscape
Considered as Aadhaar 2.0 in some way, 14 Indian researchers are developing a new blockchain and machine learning-based digital ID and video KYC authentication system that will serve as the one-stop platform for all financial transaction requirements, thus revolutionizing the financial space.
As The Times of India reports, the developers of the solution are based across the Institute for Research and Development in Banking Studies (IDRBT), the International Institute for Information Technology, Hyderabad, and the Indian Institute of Technology, Bhilai. They say it will be available in the next two and half years, and will also help drive financial innovation as money can be transferred to beneficiaries’ wallets using the system.
The platform, which is being built thanks to funding from the Ministry of Electronics and Information Technology, will be complementary to the Aadhaar system as it can serve as a digital wallet where documents other than Aadhaar that are needed for financial transactions can be stored. The funding is to the tune of Rs230 million (US$3 million), the report notes.
“Once this platform gets evolved, I think it’s going to become the basis for an auto-powered 24/7 system available for you to just finish your KYC requirements at any given point in time,” says D Janakiram, director of IDRBT as quoted by The Times of India.
“You may be able to interact with this platform through multiple modes such as phone or ATM kiosks, where you show all your documents on video and it then gets stored in the system.”
According to the researchers, the new video KYC system will not only spur financial innovation, it will also facilitate KYC checks by banks and other entities.
KYC processes with video biometrics have been taking root in India although they stalled at one point due to regulatory issues.