AuthBridge

Moonlighting in India

Moonlighting in India: Meaning, Legal Implications, Impact, and Verification Methods

Introduction to Moonlighting:

Moonlighting refers to the practice of holding a secondary job or responsibilities, typically unknown to one’s primary employer, often performed during off-hours like nights or weekends. This term gained popularity as employees started to seek additional employment beyond their regular day jobs to increase their income.

Why is Moonlighting not a good thing for employers?

Moonlighting presents several challenges for employers, often making them wary of this practice for various reasons:

  1. Decreased Productivity: Employers are concerned that employees who work multiple jobs may not perform optimally in their primary roles. Fatigue from balancing more than one job can lead to reduced energy and focus, which can adversely affect productivity and the quality of work.
  1. Conflict of Interest: There’s a risk that moonlighting could lead to situations where an employee’s secondary job conflicts with the interests of their primary employer. This could be direct, such as working for a competitor, or indirect, where the employee may inadvertently share sensitive information or insights that could benefit their secondary employer.
  1. Divided Loyalties: Employers might worry that employees who moonlight may not be fully committed or loyal to their primary job. This divided attention can lead to prioritization issues, where employees may favor their secondary employment over their main job responsibilities.
  1. Impact on Team Dynamics: If an employee is regularly tired or less engaged due to their commitments elsewhere, it can affect not only their own performance but also the morale and productivity of the entire team. This can create additional strain on colleagues who may have to compensate for the decrease in productivity.
  1. Availability Issues: Moonlighting can lead to scheduling conflicts, especially if the secondary job requires similar working hours or if unexpected demands arise from the other role. This can make it difficult for employers to rely on the employee for overtime or to cover shifts, which is particularly problematic in roles that require a high degree of flexibility.
  1. Legal and Ethical Concerns: There can be legal implications if the moonlighting activity violates non-compete clauses or confidentiality agreements. Ethically, employers may question whether an employee can impartially handle responsibilities if they are engaged in similar work elsewhere.
  1. Resource Drain: When employees are overstretched, they might use the resources from their primary job to support activities for their secondary job, whether that’s time, materials, or intellectual property. This can lead to losses and ethical breaches for the primary employer.

Legality of Moonlighting in India:

Legal Position of Moonlighting in India As previously stated, there is no explicit law in India that addresses moonlighting. However, it might be subject to legal repercussions under many statutes, including the Employment Contract Act, the Shops and Establishments Act, and the Industrial Disputes Act.  The Industrial Employment (Standing Orders) Act, of 1946 permits dual employment. Whereas under the Factories Act, of 1948, dual employment is prohibited. Under the Factories Act of 1948, an employer cannot require or let an adult employee work in the factory on days when they have already worked in another workplace. The prohibition provided by the Occupational Safety, Health, and Working Conditions (OSH) Code is restricted to simultaneous employment in a mine or factory and is largely equivalent to the one outlined in the Factories Act.

Consequences of Going Against Company Clause of Moonlighting: The consequences of going against a company clause prohibiting moonlighting can vary depending on the specific terms of the contract and the laws applicable in the jurisdiction where the employer is based. However, some common consequences include:

Disciplinary action: The employer may take disciplinary action against the employee, which may include a warning, suspension, or termination of the contract.

Legal action: If the breach of contract happens, the employer may choose to take legal action against the employee.

Damages: If the employer can demonstrate that the employee’s moonlighting activities have caused harm to the company, they may be able to claim damages.

Reputation damage: Going against a company clause can damage the employee’s reputation and may have negative consequences for their future employment prospects.

It is important to note that the specific consequences of going against a company clause prohibiting moonlighting will depend on the laws and regulations applicable in the jurisdiction where the employer is based, and the terms of the employment contract. An employee should seek legal advice before engaging in the concept of moonlighting activities if their employment contract contains a clause prohibiting such activities.

Moonlighting Policy for Employees:

Developing a Moonlighting Policy for Employees in India:

The topic of moonlighting has recently come under the spotlight in India, especially among leading corporations. There remains a significant debate around the ethical and legal dimensions of moonlighting, leading to varied stances among companies.

Role of HR in Moonlighting Policies:

It is primarily up to each company’s Human Resources department to establish a clear policy regarding moonlighting. This results in diverse policies across the corporate spectrum. Some companies have already implemented specific guidelines, while others are in the process of defining their stance.

Common Trends in Moonlighting Policies:

Most businesses tend to restrict their employees from engaging in work with competing organizations. This is a widespread measure to prevent conflicts of interest. Moreover, companies that haven’t yet formalized a separate moonlighting policy often address the issue by incorporating a clause against dual employment directly into their employment contracts.

How to Find Out if an Employee Is Moonlighting?

Companies can know if an employee is moonlighting and working for its competitors using their Universal Account Number (UAN) of the Employees’ Provident Fund (EPF). Companies can access an employee’s UAN number to get to know if two PF contributions are being made by different companies. When two PF contributions are being made simultaneously to a UAN, it is a clear indication of moonlighting by the employees.

Wipro fired 300 employees for moonlighting by tracking the EPF accounts maintained under the UANs. However, it isn’t easy to find moonlighting by an employee when he/she takes up additional work as a consultant, freelancer or part-time since an employer does not make the PF contribution for such work.

However, companies may start deploying new-age technology to track devices given to employees solely for office work and get to know when an employee uses it to do another company’s work. They may also hire a third-party agency for background checks to find out about moonlighting by an employee.

Detecting Employee Moonlighting

Businesses can ascertain whether their employees are engaged in moonlighting, especially with competitors, by monitoring their Universal Account Number (UAN) associated with the Employees’ Provident Fund (EPF). By examining an employee’s UAN, companies can detect dual PF contributions from separate employers, which is a clear sign of moonlighting.

Instances of Monitoring:

For instance, Wipro terminated 300 employees who were found moonlighting by monitoring the EPF accounts linked to their UANs. Detecting moonlighting becomes challenging when employees engage in freelance, consultancy, or part-time roles that do not require PF contributions by the employer.

Preventive Measures by AuthBridge:

AuthBridge leverages AI technology to effectively address and manage dual employment dilemmas, crafting a strategic blend of tactics for our clients and their HR teams. Our platform offers seamless workflows and minimizes data loss, enhancing the speed and efficiency of employment verification processes.

Our Dual Employment Verification Approach:

Our method involves using the UAN to conduct non-invasive employment verification, ensuring accurate results quickly and efficiently. AuthBridge’s system is designed to be data-centric and precise. Upon obtaining an employee’s UAN, we commence verification to confirm there is no concurrent employment during the client’s tenure. If dual employment is detected, the situation is immediately flagged.

Details Verified in Our UAN Checks Include:

  • Employee’s Name
  • Father’s/Husband’s Name
  • Employing Organization
  • Date of Joining
  • Date of Exit

Technological Advantages with AuthBridge:

  • Streamlined integrations through simple dashboards and APIs
  • Real-time background checks that optimize time efficiency
  • Customization of workflows to suit specific client and industry needs
  • Cost-effective solutions driven by a robust database
  • Elimination of manual processes
  • Secure digital data handling compliant with industry standards
  • Detailed and swift reporting to facilitate quicker hiring decisions

AuthBridge’s CEO on Moonlighting:

“A person can have multiple employees crediting PF into the same PF account. Many companies don’t run dual-employment verification for their employees. They will conduct a basic background screening,” said Ajay Trehan, founder and CEO of AuthBridge.“The only logical explanation is she must have been running a mini BPO setup at her home with multiple terminals and enrolled people to work on a project basis. We only run a check on PF credentials for dual employment.“

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moonlighting in india: AuthBridge CEO, Ajay Trehan words on the current insights and industry trends related to dual employment

Recent Developments in Corporate Moonlighting Policies

Wipro’s Stance:

Wipro’s CEO, Rishad Premji, recently labeled moonlighting as unethical, equating it to cheating. This strict viewpoint led to the termination of 300 employees found working for competitors, highlighting the company’s zero-tolerance policy against moonlighting.

IBM’s Approach:

IBM has also issued warnings to its workforce regarding moonlighting. The company has made it clear that such practices are not acceptable, reinforcing the policy to ensure that employees dedicate their professional energies solely to IBM.

TCS’s Approach:

Tata Consultancy Services (TCS) has voiced concerns over moonlighting, declaring it a matter of ethics and in direct contradiction with the company’s values and culture. TCS emphasizes integrity and full-time commitment from its employees, discouraging any form of dual employment.

By Siddharth, ago

How To Check Your Passport Status In India (2024 Update)

How to Check Your Passport Application Status?

There are two main ways to check your passport status in India – online and offline.

1. Online:

Passport Seva Portal: Visit Passport Seva, select ‘Track Your Application Status,’ and enter your file number and date of birth.
mPassport Seva App: Download, register, and log in to the app. Enter your file number and date of birth.

2. Offline:

National Call Centre: Call 1800 258 1800 (8:00 AM to 10:00 PM) to get your status update.
Local Passport Seva Kendra (PSK): Visit the nearest PSK with your file number and date of birth to inquire at the information counter.
SMS: Send STATUS <FILE NUMBER> to 9704 100 100 from your registered mobile number.

When it comes to checking the status of your passport application, having the right information at hand is crucial. Regardless of the channel you choose to use—online or offline—you will need the following key details:

a) Passport File Number: This is a unique 15-digit number assigned to you upon the submission of your passport application. It serves as an essential identifier in the tracking system.

b) Date of Birth: Your date of birth is required to verify your identity and match it with your passport application file.

Passport Seva Application Tracking Homepage

Using your credentials, you can follow different ways to track passport application status online/offline, as mentioned in the step-by-step breakdown of each way to check your passport status below.

How To Check Passport Status Online?

To Check the passport status online, there are two ways:

  1. Via Passport Seva Portal
  2. Via mPassport Seva Mobile App

If you’re looking for a step-by-step guide of how each channel works. Here’s a detailed breakdown:

1. Via Passport Seva Portal/Website

Step 1: Visit the Official Passport Seva Website.

Step 2: Select the ‘Track Your Application Status‘ Tab:

  • On the homepage, find and click on the ‘Track Your Application Status’ option. This is typically located on the right side of the screen.
    Track Passport Application Status

    Step 3: Choose the type of passport application:

    You will be redirected to a new page where you need to select the type of passport application from a drop-down menu. Options may include:
    1. Fresh Passport
    2. Reissue of passport
    3. Diplomatic passport
    4. Official passport
    5. And other types specific to your application

    Track Passport Application Status Tab

    Step 4: Enter the required details in the provided fields:

    – File Number: This is a unique 15-digit number assigned to your application. You can find this number on your passport application receipt.
    – Date of Birth: Enter your date of birth in the prescribed format (dd/mm/yyyy).

    Step 5: Track your status:

    After entering your details, click on the ‘Track Status’ button.

    Step 6: View your application status

    The current status of your passport application will be displayed on the screen. This status update is in real-time and will reflect the most recent information available about your application.

    2. Via mPassport Seva Mobile App

    Step 1: Download and Install the mPassport Seva App on your mobile phone.

    For iOS Users: Visit the App Store and search for “mPassport Seva.”
    For Android Users: Visit the Google Play Store and search for “mPassport Seva.”

    Download and install the app on your smartphone.

      mPassport Seva App listing on Google Play Store, App Store

      Step 2: Register on the App

      1. Open the app and complete the registration process by providing the necessary details. This may include your name, email address, and phone number.

      2. Create a secure password for your account.

      Step 3: Log In to Your Account

       After registering, log in to the app using your credentials.

      Step 4: Navigate to the ‘Track Application Status’ Section

       Once logged in, find the ‘Track Application Status’ option in the app’s menu.

          mPassport Seva App homepage

          Step 5: Enter required details

          Application File Number: Input the unique 15-digit file number assigned to your passport application.

          Date of Birth: Enter your date of birth in the specified format (dd/mm/yyyy).

          Step 6: Track your application

          Tap on the ‘Track Status’ button after entering the required details.

          Step 7: View your application status

          The app will display the current status of your passport application, providing real-time updates directly on your screen.

            Also Read:  The Strongest Passports Of The World In 2024

            How To Track Passport Application Status Offline?

            To check your passport application status offline, there are 3 ways:

            1. Check Passport Status Via SMS

            2. Check Passport Status Via Help Desk

            3. Check Passport Status Via National Toll Free Number

            If you’re looking for a step-by-step guide of how each channel works. Here’s a detailed breakdown:

            1. via SMS

            • To track the status of your passport application via SMS, follow these steps:

              Use Your Registered Mobile Number:

              Ensure you send the SMS from the mobile number registered with your passport application.

              Send an SMS:

              Format your SMS as follows: STATUS <FILE NUMBER>
              Send this SMS to 9704 100 100.

              Receive Status Update: 

              You will receive an SMS containing the current status of your passport application.

            • Important Note: This SMS service is not free and may incur standard SMS charges
            Passport Tracking Status SMS

            2. Via Helpdesk

            If you prefer to check your passport application status in person, you can use the offline helpdesk services at Passport Seva Kendra (PSK). Here’s how:

            o) Visit the Nearest Passport Seva Kendra (PSK): Go to the PSK or Regional Passport Office closest to your location.

              list of regional passport offices in India

              o) Locate the Information Counter: Upon arrival, look for the information counter where you can make inquiries.

              o) Inquire About Your Application Status: Ask the staff at the information counter for the status of your currently submitted passport application.

              Note: You can also request the status of your application by sending an email to the PSK office with your file number and date of birth. Sometimes, the online delivery status might not reflect the actual real-time delivery status. Therefore, it is advisable to contact your nearest Speed Post Centre for the most accurate information. If the personnel at the Speed Post Centre are unable to locate your address, your passport will be returned to the sender. In such cases, please reach out to your Regional Passport Office for further assistance.

              3. Via National Toll Free Number

              o) For all Indian citizens (except Jammu and Kashmir, and North-eastern states): Call 1800 258 1800 (toll-free). This service is available from 8:00 AM to 10:00 PM. During non-working hours, an automated Interactive Voice Response System (IVRS) will provide the necessary information.

              o) For residents of Jammu and Kashmir: Call 040-66720567 (regular charges may apply).

              o) For residents of North-eastern states: Call 040-66720581 (regular charges may apply).

              Passport Seva Customer care contact us number

              Various Stages of Tracking Passport Application On The Passport Seva Portal

              Passport application to delivery process

              The Passport Seva Portal provides a detailed and systematic way to track your passport application status. Here are the various stages you might encounter when tracking your passport application:

              1. Application Submitted: This initial stage indicates that your application has been successfully submitted and is under processing.

              2. Application Verified: This stage confirms that your application details have been verified. This includes verifying the documents submitted with your application.

              3. Passport Status Created: This means that your application has been formally registered and entered into the Passport Seva system, and processing has commenced. The “Created” status is essentially an acknowledgment that your application is now in the system and will be moved forward through various stages such as document verification, police verification (if required), and eventually, printing and dispatching of the passport.

              4. Police Verification Initiated: At this stage, your application has been forwarded to the local police for verification. Police verification is an essential part of the passport issuance process.

              5. Police Verification Completed: This indicates that the local police have completed the verification of your details. 

              6. PCC Status: After the police verification is completed and found satisfactory, the Police Clearance Certificate (PCC) is issued. The PCC indicates that the individual has no criminal record or adverse information on file. Post this process, the police send their report back to the Passport Seva Kendra.

              7. Passport Printing Initiated: Once the police verification is completed and approved, the process of printing your passport is initiated.

              8. Passport Printed: This stage confirms that your passport has been printed and is ready for dispatch.

              9. Passport Dispatched: Your passport has been dispatched to your address via Indian Speed Post. You will receive a tracking number to monitor the delivery status.

              10. Passport Delivered: The final stage, indicating that your passport has been successfully delivered to the address provided in your application.

                How to Check the Passport Police Verification Status?

                1. Go to Passport Seva.

                2. Log in using your registered credentials.

                3. Find and click on the ‘Track Application Status’ option.

                4. Enter your file number and date of birth.

                5. Click on ‘Track Status’ to view the current status of your police verification

                How To Track Passport Dispatch And Delivery Status?

                Follow these steps to check your passport dispatch status on the Indian Speed Post Portal:
                1. Visit the Passport Seva Portal: Log in to your account to obtain your 13-digit tracking number.
                2. Visit the India Post’s Official Website: Navigate to India Post’s official website.
                3. Navigate to the ‘Track Consignment’ Section: Find the ‘Track Consignment’ section on the homepage.
                4. Enter Your Tracking Number: Input your 13-digit tracking number in the ‘Consignment Number’ box.
                5. Click on the ‘Search’ Button: If your delivery tracking information isn’t available, it means that your passport hasn’t been dispatched.

                Passport dispatch speed post status

                If the delivery tracking information is not available, it implies that your passport has not yet been dispatched.

                Addressing Delivery Issues:

                Online vs. Real-Time Status: Sometimes, the online delivery status might not reflect real-time updates. For the most accurate information, contact your nearest Speed Post Centre directly.
                Handling Delivery Problems: If the Speed Post Centre personnel are unable to locate your address, the passport will be returned to the sender. In such cases, contact your Regional Passport Office for assistance in re-dispatching or collecting your passport.

                Can You Collect the Passport from the Regional Passport Office?

                Yes, in emergencies, you can collect your passport from the Regional Passport Office. However, there are specific steps and conditions to be aware of:

                1. Application Form: You must fill out an application form explaining the urgent need to collect the passport in person.

                2. Approval Process: The Regional Passport officers will review your application. They have the discretion to accept or reject your request based on the urgency and validity of the reason provided.

                What does it mean when your passport is “ready for dispatch”?

                When your passport is “ready for dispatch,” it means that the processing of your passport application is complete, and your new passport is prepared for delivery. This indicates that your passport has been printed, approved, and is about to be sent to the address you provided during the application process

                  Tips for a Seamless Passport Tracking Experience

                  1. Keep Your Credentials Handy: Always have your file number and date of birth ready.
                  2. Use Official Channels: Track your status via the Passport Seva Portal or mPassport Seva app.
                  3. Stay Updated: Regularly check the status online for any changes.
                  4. Verify Contact Details: Ensure your registered mobile number and email are up-to-date.
                  5. Seek Help When Needed: Contact the Passport Seva helpline or visit the nearest PSK if issues arise.

                  Time Taken to Process Your Passport

                  The time taken to process your passport in India varies based on the type of application:

                  1. Normal Application: Typically takes 30 to 45 days from the date of submission.
                  2. Tatkal Application: Generally processed within 1 to 7 days, subject to verification and approval.
                  Talk to sales - AuthBridge

                  Other Important Passport-Related Information

                  Passport Information:

                  A passport is an official travel document issued by a government that certifies the identity and nationality of its holder for international travel. It includes personal details such as the holder’s name, photo, date of birth, and nationality.

                  Passport Application Online:

                  Applying for a passport online involves filling out the application form on the Passport Seva portal, uploading the required documents, and scheduling an appointment at the nearest Passport Seva Kendra (PSK).

                  Documents Required for Passport in India:

                  To apply for a passport in India, you need documents such as proof of address, proof of date of birth, and identity proof. Common documents include an Aadhaar card, voter ID, and birth certificate.

                  Appointment Availability Status:

                  The status indicating the availability of appointment slots at Passport Seva Kendras (PSKs) for applicants to schedule their visit. It is checked during the initial stages of the passport application process, prior to submitting the application and tracking its status.

                  Passport Application Form:

                  The passport application form can be filled out online on the Passport Seva portal. It includes sections for personal information, address details, and passport-specific details.

                  Passport Renewal:

                  Passport renewal involves reapplying for a passport that is about to expire or has expired. The process is similar to applying for a new passport and can be done online or at a PSK.

                  Documents for Passport:

                  Common documents needed for a passport include proof of address, proof of date of birth, and identity proof. Additional documents may be required for specific cases like minor passports or re-issues.

                  Passport Enquiry:

                  You can make inquiries about passport application status, required documents, or any other related information through the Passport Seva portal, helpline numbers, or by visiting a PSK.

                  Check Passport Status:

                  The status of your passport application can be checked online via the Passport Seva portal or the mPassport Seva mobile app by entering your file number and date of birth.

                  Police Clearance Certificate:

                  A Police Clearance Certificate (PCC) is issued to Indian passport holders when they apply for residential status, employment, or long-term visa or immigration. It certifies that the individual has no criminal records.

                  Passport Renewal Process:

                  The passport renewal process involves filling out the renewal application form online, submitting the necessary documents, paying the fees, and attending the appointment at the PSK.

                  Tatkal Passport:

                  A Tatkal passport is issued under the Tatkal scheme for those needing a passport urgently. The process is expedited, and the passport is typically issued within a few days, subject to verification.

                  Passport Dispatch Status:

                  Once the passport is processed, its dispatch status can be tracked via the Passport Seva portal or the India Post website using the 13-digit tracking number provided.

                  Police Verification for Passport:

                  Police verification is a crucial step in the passport application process where the police verify the applicant’s address and background. It is required for first-time applicants and sometimes for renewals.

                  Passport Address Change:

                  To change the address on your passport, you need to apply for a reissue of the passport with the new address proof. The process can be initiated online via the Passport Seva portal.

                  Passport Renewal Status:

                  Passport renewal status indicates the current stage of processing for your passport application. It helps applicants know if their renewal request has been received, approved, or if further action is required. Checking the status regularly can ensure timely updates and help address any issues promptly.

                  Passport Renewal Tracking:

                  Passport renewal tracking allows applicants to monitor the progress of their renewal application through an official tracking system. By using a tracking number, individuals can access real-time updates on their application status. This service provides peace of mind and ensures applicants stay informed throughout the process.

                    FAQs on Passport Status Check 2024

                    No, the National Call Centre does not provide 24×7 customer care service. It operates from 8:00 AM to 10:00 PM every day of the week. During non-operational hours, customers can use the automated Interactive Voice Response System (IVRS) to get information.

                    PSK stands for Passport Seva Kendra, a regional office where applicants can apply for a new passport, renew an existing one, or make modifications.

                    Yes, the passport tracking service provides detailed information on the status of your application, including where it is stuck and any further actions needed.

                    You can check your passport status and details on the Passport Seva portal. The information is generally updated 14 days after the application or renewal process.

                    You can check the dispatch status of your passport by visiting the official Passport Seva portal and using the tracking feature provided there.

                    To check your passport status using your mobile number, send an SMS in the format STATUS [FILE NUMBER] to 9704100100. This should be done using the mobile number registered during your passport application process.

                    No, typically you are not permitted to pick up your passport in person from the Regional Passport Office. It is usually dispatched to your address.

                    No, providing the date of birth is mandatory to track the status of a passport application.

                    Yes, the status of the police verification report, including whether it has been submitted or is still pending, can be checked through the passport tracking service.

                    You can track your passport status online using the official Passport Seva portal or the mPassport Seva mobile app. Offline, you can call the National Passport Information Center at 1800 258 1800 or send an SMS to 9704 100 100.

                    The passport tracking file number is an alphanumeric reference code assigned to you after you submit your passport application and pay the necessary fee. It helps monitor the progress of your application.

                    According to government regulations, the typical timeframe to receive an Indian passport is between 30 to 45 days from the date of application.

                    Passport Seva Kendra (PSK) operates from Monday to Friday between 9:30 AM and 4:30 PM. The timings for token issuance are between 9:30 AM and 4:00 PM.

                    No, under the current system, all applicants must be physically present at the Passport Seva Kendra (PSK) and submit their application with the Application Print receipt and original documents after applying online.

                    Check the delivery status on the India Post website using the tracking number. If there are issues, contact your nearest Speed Post center or the Passport Office from which your passport was dispatched for assistance.

                    To verify your passport status in India, visit the Passport Seva website, log in, and check the “Track Application Status” section with your file number and date of birth. Alternatively, send “STATUS [File Number]” to 9704100100 via SMS.

                    By admin, ago
                    Cost Effective TPRM Strategies for Small Businesses

                    Smart Third-Party Risk Management for Small Businesses: Maximizing Value on a Minimal Budget

                    Introduction to Third-Party Risk Management for Small Businesses

                    In the vibrant and competitive business landscape of India, small businesses face a unique set of challenges and constraints, particularly when it comes to managing third-party risks. The essence of Third-Party Risk Management (TPRM) lies not just in its ability to safeguard a business from external threats but also in enhancing operational efficiency and compliance. However, the perception that TPRM is a costly affair often deters small businesses from adopting it, potentially leaving them vulnerable to unforeseen risks and disruptions.

                    Understanding the Need for TPRM in Small Businesses

                    For small businesses, the impact of third-party failures can be disproportionately severe, ranging from operational disruptions to legal and regulatory non-compliance. The interconnected nature of today’s business environment means that even small enterprises must engage with a myriad of suppliers, vendors, and partners, each carrying their own set of risks.

                    The Challenge of Implementing TPRM on a Tight Budget

                    The primary challenge for small businesses in India is to implement an effective TPRM program without straining their limited financial resources. The goal is to find a balance between necessary risk management activities and the overall budget constraints. This introduction sets the stage for exploring strategic, technological, and procedural solutions that enable small businesses to implement TPRM efficiently and cost-effectively.

                    The Challenge of Implementing TPRM on a Tight Budget

                    The primary challenge for small businesses in India is to implement an effective TPRM program without straining their limited financial resources. The goal is to find a balance between necessary risk management activities and the overall budget constraints. This introduction sets the stage for exploring strategic, technological, and procedural solutions that enable small businesses to implement TPRM efficiently and cost-effectively.

                    Strategic Planning and Framework Establishment

                    Successful TPRM doesn’t start with spending; it starts with strategic planning. For small businesses, defining clear TPRM objectives and establishing a scalable framework are crucial steps that pave the way for effective risk management without necessitating significant financial outlay.

                    Defining TPRM Objectives and Scope on a Budget

                    Before diving into the tools and processes, small businesses need to define what they aim to achieve with TPRM. This involves identifying key risk areas, compliance requirements, and critical third-party relationships that could impact the business’s operations and reputation.

                    Strategy: Align TPRM objectives with business goals and prioritize actions based on risk severity and resource availability. Use a SWOT analysis to understand strengths, weaknesses, opportunities, and threats in the context of third-party relationships.

                    Developing a Phased TPRM Implementation Plan

                    Implementing TPRM in phases allows for gradual investment, making it easier to manage for small businesses with tight budgets. Start with foundational elements like vendor classification and basic due diligence, and scale up as the business grows.

                    Action Plan: Create a timeline that starts with immediate, no-cost actions, such as establishing communication protocols with vendors, and progresses to more sophisticated measures like integrating TPRM software solutions as the budget allows.

                    Leveraging Technology and Automation

                    The advent of digital tools and technologies offers a lifeline for small businesses looking to implement TPRM efficiently. Many free and low-cost tools can automate and streamline risk management processes, from vendor onboarding to continuous monitoring.

                    Utilizing Free and Low-Cost TPRM Tools

                    There are a variety of free and affordable TPRM tools available that can automate risk assessments, monitor third-party compliance, and facilitate secure data exchanges. Leveraging these tools can significantly reduce the manual workload and associated costs.

                    Tool Recommendation: Explore open-source TPRM platforms and free versions of commercial software with the option to upgrade as your needs evolve. Tools like Google Sheets can also be customized for risk management purposes.

                    Benefits of Digital Vendor Management and Onboarding Software

                    Vendor management software simplifies the process of vendor onboarding, due diligence, and ongoing risk assessment. By automating these processes, small businesses can save time and reduce errors, which in turn lowers the cost of TPRM.

                    Example: Implementing a digital onboarding system like Supplier Onboarding Ariba can help standardize the process, ensuring all vendors meet your business’s compliance and risk management standards from the start.

                    Simplifying the Vendor Onboarding Process

                    Streamlining the onboarding process ensures that only vendors that meet your risk and compliance criteria are brought into the fold. This minimizes potential risks and simplifies the management of third-party relationships.

                    Streamlining Third-Party Onboarding with Standardized Processes

                    Create a standardized onboarding checklist that covers all necessary due diligence and compliance checks. This approach not only ensures consistency but also speeds up the onboarding process, allowing you to quickly engage with new vendors without compromising on risk assessment.

                    Checklist Example: Develop a template that includes vendor verification, risk assessment, and compliance checks. This can be a simple document that guides your team through each step of the onboarding process.

                    Implementing Effective Yet Straightforward Vendor Verification Methods

                    Vendor verification doesn’t have to be complex or expensive. Simple strategies like checking references, reviewing public financial records, and conducting interviews can provide insights into the vendor’s reliability and risk profile.

                    Practical Tip: Utilize online databases and public records for preliminary verification before engaging in more detailed assessments. Leveraging your network for vendor references can also provide valuable insights.

                    Risk Assessment and Continuous Monitoring

                    Identifying and prioritizing risks are crucial for effective TPRM. Small businesses can adopt cost-effective strategies for continuous monitoring and risk assessment to ensure third-party compliance and mitigate potential risks.

                    Prioritizing Risks with a Cost-Effective Risk Scoring Mechanism

                    Develop a simple yet effective risk scoring system that categorizes vendors based on the level of risk they pose. This can help small businesses focus their resources on managing high-risk vendors more efficiently.

                    Implementation Guide: Use a basic Excel spreadsheet to score vendors based on factors such as financial stability, compliance record, and the criticality of their service to your business.

                    Implementing Continuous Monitoring with Minimal Resources

                    Continuous monitoring ensures that any changes in a vendor’s risk profile are quickly identified and addressed. Small businesses can implement cost-effective monitoring by utilizing automated alerts from risk management software or setting up Google Alerts for news related to critical vendors.

                    Monitoring Strategy: Assign team members to regularly review vendor performance against established KPIs and use automated tools wherever possible to alert you to potential issues.

                    Achieving Compliance and Due Diligence Economically

                    For small businesses, compliance and due diligence are often seen as costly and time-consuming processes. However, with the right strategies, these essential aspects of TPRM can be managed effectively, even on a tight budget.

                    Simplified Due Diligence Practices for Small Businesses

                    Due diligence need not be an exhaustive process that drains resources. Simplifying this practice involves focusing on the most critical elements that assess a vendor’s reliability and risk profile.

                    Practical Approach: Start with basic checks like business registration verification, owner background checks, and financial health assessments using publicly available resources. These initial steps can be crucial in identifying potential red flags without incurring high costs.

                    Tool Suggestion: Utilize free online databases and government websites for initial due diligence steps. Tools like the Ministry of Corporate Affairs website in India can provide valuable information on registered companies.

                    Cost-effective Strategies for Maintaining Third-party Compliance

                    Ensuring that your vendors remain compliant with relevant regulations and standards is an ongoing process. Small businesses can use a combination of technology and regular check-ins to maintain oversight without significant investment.

                    Strategy Implementation: Develop a compliance calendar that schedules regular reviews of vendor compliance status, utilizing email reminders or free project management tools to keep track of these dates. Engage in open communication with vendors about compliance expectations from the outset to foster a culture of transparency and cooperation.

                    Case Studies: Success Stories from Small Businesses

                    Real-world examples can provide valuable insights into how small businesses have successfully implemented TPRM strategies on a budget.

                    Case Study 1: Tech Startup Utilizes Open-Source Tools for Vendor Management

                    A Bangalore-based tech startup faced challenges in managing a growing number of vendors. By implementing an open-source vendor management system, the company automated much of the due diligence and ongoing monitoring processes. This approach not only reduced manual work but also improved the accuracy and timeliness of risk assessments.

                    Outcome: The startup maintained a lean operational budget while enhancing its ability to quickly respond to vendor-related risks, demonstrating the effectiveness of open-source tools in managing TPRM processes.

                    Case Study 2: Retail SME Implements a Simplified Compliance Program

                    A small retail business in Mumbai developed a simplified compliance program that focused on key risk areas relevant to its operations and suppliers. Through targeted workshops and regular communications, the business educated its vendors on compliance requirements, significantly reducing the risk of non-compliance.

                    Outcome: By prioritizing education and communication, the retailer strengthened its compliance posture with minimal expenditure, showcasing a cost-effective approach to ensuring third-party compliance.

                    Challenges, Solutions, and Future Outlook

                    Implementing TPRM in a cost-effective manner comes with its set of challenges. However, with strategic planning and innovative thinking, these hurdles can be overcome.

                    Navigating Common Hurdles in Cost-effective TPRM

                    Small businesses often face challenges such as limited access to risk management expertise, technological barriers, and resistance from third parties unfamiliar with compliance requirements. Overcoming these obstacles requires a focus on education, leveraging community resources, and adopting scalable technology solutions.

                    Strategic Insight: Participate in industry forums and leverage free online resources for knowledge sharing and networking. This can help small businesses gain insights into affordable TPRM strategies and technologies.

                    The Future of TPRM for Small Businesses in India

                    The future of TPRM in India’s small business sector looks promising, with increased awareness and accessibility to affordable risk management tools. As technology continues to evolve, small businesses will find it easier to implement sophisticated TPRM strategies without breaking the bank.

                    Vision for the Future: Continued innovation in the TPRM space, including the development of AI and blockchain technologies, will enable more small businesses to adopt advanced risk management practices, ensuring their resilience and competitiveness in the market.

                    OnboardX By AuthBridge

                    Welcome to the Future of Vendor Management, OnboardX: The Comprehensive Platform for end-to-end Third-Party Onboarding and Verification. Say goodbye to the hurdles of inefficiency, data disparities, and regulatory complexities. 

                    Adopt a path of automated processes, scalable operations, and cutting-edge analytics to elevate your vendor relationship management to new heights.

                    As leaders in the world of BGV and due-diligence, our one stop onboarding solution aims to provide seamless onboarding to organisations by  offering features such as:

                    • Case approval workflow with payment and contract signing
                    • Custom communication options in emails and WhatsApp
                    • 160+ real-time checks and verifications
                    • Personalized and customizable solution
                    • Seamless API integration
                    • Fully automated journey with multiple touch points and clear visibility

                    Why Choose OnboardX?

                    OnboardX is a comprehensive one-stop solution for all your vendor onboarding needs and here a few reasons why we think it will be the best suited solution for your needs:

                    • Unmatched Flexibility: A low-code platform allowing fast, custom solution development with minimal technical skill requirements.
                    • Comprehensive Integration: Deep integration capabilities with major ERP and P2P suites, serving as a central third-party data layer.
                    • Advanced Third-Party Data Management: Expertise in managing complex and continuously changing third-party data, with more than 18+ years of enterprise experience.
                    • Targeted Solutions Over Generic Tools: Specific focus on third-party data, differentiating from generic P2P suites, MDM solutions, and in-house systems.
                    • Pre-Integrated APIs: Comes with pre-integrated APIs and proprietary databases for faster turn-around time and comprehensive verification processes
                    • Easy on Pockets: Consolidate data collection, verification, and signature processes into a single, budget-friendly solution. Say goodbye to fragmented expenses on multiple tools – OnboardX streamlines it all for the price of one.

                    Dedicated Third Party Expertise: Dedicated team focused on vendor management solutions, ensuring specialised knowledge and tailored services.

                    Why Choose OnboardX?

                    OnboardX is a comprehensive one-stop solution for all your vendor onboarding needs and here a few reasons why we think it will be the best suited solution for your needs:

                    • Unmatched Flexibility: A low-code platform allowing fast, custom solution development with minimal technical skill requirements.
                    • Comprehensive Integration: Deep integration capabilities with major ERP and P2P suites, serving as a central third-party data layer.
                    • Advanced Third-Party Data Management: Expertise in managing complex and continuously changing third-party data, with more than 18+ years of enterprise experience.
                    • Targeted Solutions Over Generic Tools: Specific focus on third-party data, differentiating from generic P2P suites, MDM solutions, and in-house systems.
                    • Pre-Integrated APIs: Comes with pre-integrated APIs and proprietary databases for faster turn-around time and comprehensive verification processes
                    • Easy on Pockets: Consolidate data collection, verification, and signature processes into a single, budget-friendly solution. Say goodbye to fragmented expenses on multiple tools – OnboardX streamlines it all for the price of one.

                    Dedicated Third Party Expertise: Dedicated team focused on vendor management solutions, ensuring specialised knowledge and tailored services.

                    Conclusion

                    The journey to implementing cost-effective TPRM strategies requires commitment, strategic thinking, and a willingness to leverage technology. By following the outlined steps and learning from real-life case studies, small businesses in India can build robust TPRM programs that protect their operations and foster sustainable growth. With the right approach, managing third-party risks doesn’t have to be a resource-intensive endeavor; it can be an achievable goal for businesses of all sizes.

                    By admin, ago
                    ITR-blog

                    8 Mistakes to Avoid When Filing Your Income Tax Return (ITR)

                    Filing your Income Tax Return (ITR) can often feel like navigating a maze of rules and regulations. However, making mistakes on your tax return or any compliance oversight can lead to penalties, delays, or even an audit by the tax authorities. Many do-it-yourself tax filers make mistakes in their returns, leading to notices from the tax department.

                    In this blog, we have collated some common mistakes you should avoid when filing your income tax returns. Avoiding these mistakes and double-checking your return before submission can ensure a smooth tax filing process. 

                    8 Mistakes To Avoid When Filing ITR In 2024

                    Here are the top common mistakes that you should avoid while filing your Income Tax Returns in 2024:

                    1. Not Linking Your PAN to Aadhaar Card
                      One common mistake taxpayers make is failing to link their Permanent Account Number (PAN) to their Aadhaar card. The government of India has made it mandatory to link PAN with Aadhaar to file ITR and complete various financial transactions. Failure to do so may result in penalties imposed by the Income Tax and difficulties in completing financial transactions. Linking PAN with Aadhaar helps verify your identity and facilitates faster processing of tax refunds. To link your PAN with Aadhaar, you can visit the Income Tax Department’s official website or use other designated methods provided by the government. Ensure that your personal information matches across both documents to avoid any discrepancies.
                    2. Incorrect Personal Information/Bank Details
                      One of the most basic yet crucial mistakes is entering incorrect personal details such as name, PAN Card (Permanent Account Number), address, or bank details. Double-check all personal information before submitting your return to ensure accuracy. Similarly, providing incorrect bank details for tax refunds can lead to delays or even non-receipt of refunds. Ensure all your details are accurate and up-to-date.
                    3. Mismatch in Form Selection
                      Taxpayers often make the mistake of selecting the wrong ITR form for their income sources. Each form is designed for specific types of income, so ensure you choose the appropriate form based on your income sources to avoid discrepancies.
                    4. Not Disclosing Other Income Sources or Exemption Income
                      Failing to disclose all sources of income is a common mistake. Whether it’s income from salary, rental properties, investments, or freelance work, ensure you report all income accurately to avoid penalties for underreporting. Also, remember that income such as dividends from certain investments or interest earned on tax-free bonds may be exempt from tax but still needs to be reported in your ITR. Ensure you include all exempt income to avoid discrepancies.
                    5. Ignoring TDS Details
                      Tax Deducted at Source (TDS) details must be correctly reported in your ITR. Ensure that you include all TDS deductions from your employers, banks, or any other deductors. Cross-check the details with your Form 26AS to avoid any discrepancies.
                    6. Not Reconciling Form 26AS
                      Form 26AS is a consolidated statement that contains details of tax deducted on your behalf and tax deposited by you. Failure to reconcile the details in Form 26AS with your ITR can lead to inconsistencies and potential notices from the tax department.
                    7. Forgetting to Claim Deductions
                      Tax deductions can significantly reduce your taxable income, but many taxpayers forget to claim them. Take advantage of Section 80C, 80D, 80G, etc. deductions, and keep all necessary documents handy to support your claims.
                    8. Not Filing Within the Deadline
                      Missing the filing deadline for your ITR can result in penalties and interest charges. To avoid such consequences, file your return on time, preferably well before the due date. After filing your return, stay vigilant for any tax notices or communications from the tax department. Ignoring or delaying response to such notices can lead to further complications.

                    For the latest updates on ITR filing deadlines and other important announcements, please visit the official Income Tax e-Filing portal. Check the portal regularly for any updates regarding filing deadlines and compliance requirements.

                    Old Or New: Which Tax Regime Should You Choose?

                    One significant decision taxpayers face is choosing between the old and new tax regimes. Each regime comes with its tax slabs and deductions, making it crucial to assess which one aligns better with your financial situation.  Under the old tax regime, taxpayers can avail of various deductions and exemptions, such as Section 80C (investment in specified instruments), Section 80D (health insurance premium), and others. Tax slabs are progressive, with different rates applicable to different income brackets. 

                    The new tax regime offers reduced tax rates but eliminates most deductions and exemptions available under the old regime. Tax slabs are simplified, with lower rates applicable across income brackets.

                    Here’s a comparison to help you make an informed decision:

                    Income BracketOld Tax RegimeNew Tax Regime
                    Up to ₹2.5 lakhsNilNil
                    ₹2,50,001 to ₹3,00,0005%Nil
                    ₹3,00,001 to ₹5,00,0005%5%
                    ₹5,00,001 to ₹6,00,0020%5%
                    ₹6,00,001 to ₹9,00,00020%10%
                    ₹9,00,001 to ₹10,00,00020%15%
                    ₹10,00,001 to ₹12,00,00030%15%
                    ₹12,00,001 to ₹15,00,00030%20%
                    Above ₹15,00,00130%30%

                    Tax Deductions Available In ITR

                    Here are some common deductions you can avail of while filing your Income Tax Return (ITR):

                    DeductionApplicability
                    Section 80CInvestment in specified instruments such as PPF, EPF, ELSS, etc.
                    Section 80DPremium paid towards health insurance policies
                    Section 80GDonations to specified charitable institutions
                    Section 24(b)Interest paid on home loan
                    Section 80EInterest on education loan
                    Section 80TTAInterest on savings account
                    Section 80CCD(1B)Additional deduction for investment in NPS beyond Section 80C limit

                    These deductions can significantly reduce your taxable income, lowering your tax liability. Explore all available deductions and claim those applicable to your financial situation.

                    Ensuring a smooth tax filing experience isn’t just about ticking boxes—it’s about safeguarding financial integrity. Your vigilance in avoiding common mistakes is the cornerstone of a stress-free tax season. 

                    For businesses, integrating standardised practices and innovative tech measures like the ITR verification API is the key to optimising efficiency, ensuring accurate filings, and maintaining compliance with confidence.

                    Benefits Of ITR Verification API To Businesses

                    Overall, the ITR verification API offers numerous benefits to businesses and companies, including time savings, accuracy, integration capabilities, cost savings, compliance, security, scalability, and enhanced experience. It makes the tax filing process more efficient and streamlined. 

                    • Time-saving for Bulk Verification: For businesses and companies with multiple employees or entities, verifying individual tax returns manually can be time-consuming. The ITR verification API automates this process, saving valuable time for tax professionals and HR personnel who would otherwise have to verify each return manually. Businesses can verify tax returns in bulk and process a large volume of returns quickly and efficiently. This is especially beneficial for companies with a large workforce or multiple subsidiaries, where verifying individual returns manually would be impractical.

                    • Accuracy: Manual verification of tax returns can be prone to errors, leading to discrepancies and potential penalties. By automating the verification process, the API ensures greater accuracy and consistency in verifying returns, reducing the risk of errors and ensuring compliance with tax regulations.
                    • Compliance & Data Security: Ensuring compliance with tax regulations is crucial for businesses and companies to avoid penalties and legal issues. The ITR verification API helps businesses stay compliant by providing a standardised and transparent verification process, reducing the risk of non-compliance and associated consequences. The API employs robust security measures to protect sensitive information, ensuring data privacy and safeguarding against unauthorised access and data breaches.

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                    If you are unsure about any aspect of your tax return, consider seeking professional advice to ensure compliance with tax laws and regulations.

                    By Siddharth, ago
                    UPI Launched In Sri Lanka and Mauritius

                    India’s UPI Launched In Sri Lanka And Mauritius, Following France

                    In a significant move to promote regional financial integration and digital payments adoption, India launched its Unified Payments Interface (UPI) and RuPay card services in both Sri Lanka and Mauritius on February 12th, 2024. This expansion marks a key milestone in India’s efforts to position its homegrown payment platforms as global players, following the successful launch of UPI in France earlier this month.

                    The official launch ceremony, held virtually, saw the participation of Prime Minister Narendra Modi of India, the President of Sri Lanka, Mr Ranil Wickremesinghe and the Prime Minister of Mauritius, Mr Pravind Jugnauth. This high-level participation underscores the strategic importance placed on this initiative by all parties involved.

                    Driving Economic Growth Through Cross-Border Payments

                    The immediate impact of this launch is the facilitation of seamless and cost-effective peer-to-peer (P2P) transactions between citizens of India, Sri Lanka, and Mauritius. This is expected to boost tourism, trade, and remittances between these nations, contributing to their economic growth. With millions of Indian tourists visiting Sri Lanka and Mauritius annually, the convenience of using familiar payment methods like UPI and RuPay cards is likely to encourage tourism spending. Similarly, simplified cross-border trade settlements can potentially increase trade volumes between these countries.

                    “India’s UPI or United Payments Interface comes in a new role today – Uniting Partners with India” – Speaking at the launch, Prime Minister of India Mr Narendra Modi.

                    Beyond immediate economic benefits, the launch of UPI holds immense potential for promoting financial inclusion in both Sri Lanka and Mauritius. A significant portion of the population in these countries remains unbanked or underbanked. UPI’s user-friendly interface and low entry barriers can act as a gateway to formal financial services for these individuals, bringing them into the mainstream economy.

                    A Step Towards A Cashless Future

                    The launch of UPI and RuPay in Sri Lanka and Mauritius marks a significant step towards achieving the vision of a cashless and financially inclusive South Asia. It demonstrates India’s commitment to leveraging technological prowess to empower its neighbours and foster regional economic cooperation. As challenges are addressed and user adoption grows, this initiative has the potential to reshape the regional payments landscape and pave the way for a more integrated and digital future for South Asia.

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                    Impact Of The UPI

                    India’s Unified Payments Interface (UPI) has taken the fintech scene by storm. Gone are the days of tedious and complicated bank transactions; instead, simple virtual payment addresses (VPAs) enable instant, cashless transactions anytime, anywhere. This user-friendly, affordable platform has brought millions into the banking and financial system, boosting inclusion. Merchants have also flourished, accepting secure QR code payments that eliminate cash handling risks and expand their reach. 

                    Speaking about the convenience and speed of UPI transactions, the Prime Minister of India informed that more than 100 billion transactions took place via UPI last year worth INR 2 lakh crores or 8 trillion Sri Lankan rupees or 1 trillion Mauritius rupees. UPI’s impact extends beyond just transactions, fueling e-commerce growth and the digital economy with its instant, secure nature that builds trust among online shoppers.

                    AuthBridge is the gold standard in the world of Background Verification and Due Diligence. Connect with us today and explore our range of services including UPI verification, Aadhaar verification and more.

                    By Abhinandan, ago
                    The Power of Aadhaar based eKYC

                    All You Need To Know About Aadhaar-based EKYC

                    With the rise in globalisation and the digital age, efficient and secure identity verification systems have become essential for businesses, governments, and individuals alike. Aadhaar-based eKYC (Electronic Know Your Customer) has emerged as a revolutionary solution in India, simplifying identity authentication processes for sectors like banking, telecom, insurance, and more. This digital solution leverages Aadhaar, the world’s largest biometric identification system, to offer a secure, paperless, and cost-effective means of verifying an individual’s identity.

                    What Is Aadhaar-Based eKYC?

                    Aadhaar-based eKYC (Electronic Know Your Customer) is a digital process designed to authenticate and verify an individual’s identity using the Aadhaar database. It eliminates the need for physical documents, relying instead on the biometric and demographic data associated with the unique Aadhaar number. This digital verification is fast, secure, and paperless, making it ideal for industries where customer identity verification is a legal or regulatory requirement.

                    The system works by accessing the Aadhaar database, maintained by the Unique Identification Authority of India (UIDAI). The Aadhaar-based eKYC system facilitates seamless Aadhaar verification and Aadhaar authentication, enabling real-time verification through Aadhaar biometric verification using fingerprints, facial recognition, or iris scans. From applying for a mobile connection to opening a bank account, Aadhaar eKYC is becoming an important tool for businesses across industries.

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                    How Does Aadhaar-Based eKYC Work?

                    1. User Consent: The individual provides their Aadhaar number and consents to share their Aadhaar-linked data.
                    2. Aadhaar Authentication: The requesting entity sends an authentication request to the UIDAI, which verifies the biometric data (fingerprint or iris scan) or demographic information provided by the individual.
                    3. eKYC Data Sharing: Upon successful authentication, the UIDAI shares the eKYC data (name, address, photograph, etc.) with the service provider for further processing.

                    Example:

                    A customer applying for a new mobile connection can provide their Aadhaar number to the telecom provider. By completing Aadhaar-based eKYC, the customer’s details are instantly verified, eliminating the need for submitting physical ID documents.

                    Benefits Of Aadhaar-Based eKYC

                    • Speed And Efficiency

                    Aadhaar-based eKYC significantly reduces the time required to verify customer identities. Traditional KYC processes involve physical paperwork, photocopies, and manual verification, often taking days or even weeks. With Aadhaar eKYC, the process is completed in minutes, providing businesses with an edge in customer service and improving overall efficiency.

                    • Cost-Effective

                    The elimination of paper-based documentation results in reduced operational costs. For sectors like banking, where KYC compliance is critical, switching to Aadhaar paperless KYC can reduce paperwork costs by over 80%. This digital solution also saves businesses from storage and handling expenses associated with physical documents.

                    • Enhanced Security

                    Aadhaar-based eKYC offers enhanced security through biometric authentication. With fingerprint and facial recognition verification, it becomes extremely difficult for fraudsters to falsify identities. The unique Aadhaar number linked with a person’s biometric data ensures that only the authorised individual can complete the KYC process.

                    • Compliance with Regulatory Standards

                    Aadhaar eKYC complies with India’s stringent regulations, like the upcoming DPDP act, around identity verification, making it a legal and robust solution for businesses in industries like finance, telecom, and insurance. The UIDAI ensures data security and user privacy in line with government standards.

                    Use Cases Of Aadhaar-Based eKYC Across Industries

                    1. Aadhaar KYC for Banks

                    Banks are legally required to verify the identity of their customers for account opening, loan processing, and other services. Aadhaar-based eKYC simplifies this by allowing banks to authenticate customers remotely. For instance, major banks in India use eKYC to open new savings accounts or process loans in real-time.

                    2. Aadhaar KYC for Telecom

                    Telecom companies leverage Aadhaar KYC for mobile connections, enabling quick and seamless onboarding of customers. For example, when applying for a new SIM card, customers can provide their Aadhaar details and instantly complete the KYC process without submitting any physical documents.

                    3. Aadhaar KYC for Financial Services and Mobile Wallets

                    For mobile wallets and digital financial services, Aadhaar-based eKYC enables secure and quick onboarding of customers. Many fintech platforms and e-payment aggregators use this system to verify users’ identities, making digital transactions more secure and seamless.

                    Legal And Regulatory Aspects Of Aadhaar-Based eKYC

                    The adoption of Aadhaar-based eKYC in India is guided by several legal frameworks and regulatory guidelines that ensure its secure and lawful usage. The primary regulatory body overseeing Aadhaar operations and usage is the Unique Identification Authority of India (UIDAI). Various laws and directives have been enacted to protect user data, ensure transparency in the eKYC process, and prevent misuse.

                    Regulatory Guidelines by UIDAI

                    UIDAI is responsible for managing the Aadhaar system and ensuring the privacy and security of citizens’ data. It has issued clear guidelines for businesses and service providers that use Aadhaar for identity verification. Some of these regulations include:

                    • Data Security: Companies must ensure that the Aadhaar data they handle is encrypted and stored securely. Sharing of Aadhaar data without consent is prohibited.
                    • User Consent: Aadhaar-based eKYC can only be conducted with explicit consent from the user. This includes the individual agreeing to share their biometric data and Aadhaar number for verification.
                    • Aadhaar Authentication Regulations: Businesses and service providers must use the Aadhaar authentication APIs provided by the UIDAI for secure transactions. This ensures that the eKYC process is tamper-proof and compliant with government standards.

                    Aadhaar and the Supreme Court of India

                    In 2018, the Supreme Court of India delivered a landmark judgment regarding the usage of Aadhaar. The court ruled that while Aadhaar was constitutional, its use must be regulated to protect individual privacy. According to the verdict:

                    • Aadhaar is mandatory for availing of government benefits and subsidies.
                    • It is not mandatory for services like obtaining SIM cards or opening bank accounts, though many private companies continue to use Aadhaar-based eKYC for its efficiency.

                    This ruling ensures that Aadhaar-based eKYC is not misused by private organisations and that citizens retain control over how their Aadhaar data is used.

                    Security and Privacy Concerns Around Aadhaar eKYC

                    While Aadhaar-based eKYC has revolutionised identity verification, there are ongoing concerns regarding data security and user privacy. With biometric and demographic data being sensitive, any breach could result in identity theft, financial fraud, or misuse of personal information.

                    Biometric Data Security

                    Aadhaar-based eKYC relies heavily on biometric authentication, including fingerprint scans and facial recognition. The UIDAI ensures that biometric data is encrypted and stored securely. However, the risk of biometric data leaks or hacking has raised concerns, as this data cannot be changed, unlike passwords or PINs.

                    User Consent and Control

                    The regulatory framework ensures that Aadhaar-based eKYC can only be conducted with the individual’s consent. However, concerns around informed consent still exist, as many users may not fully understand the implications of sharing their biometric and demographic information. Ensuring greater transparency around how user data is handled, stored, and processed is crucial for building trust.

                    Preventing Data Misuse

                    Aadhaar’s database is centralised, and despite rigorous security measures by UIDAI, any breach could have wide-reaching effects. Hence, regular audits, monitoring, and strict penalties for data misuse have been enforced to safeguard user data.

                    The UIDAI maintains the Aadhaar Data Vault, a secure storage system where Aadhaar numbers are stored in encrypted form. This system ensures that sensitive data is not vulnerable to hacking attempts. Additionally, the UIDAI offers a Virtual ID (VID) system, allowing users to share a temporary 16-digit virtual ID instead of their Aadhaar number for authentication, thereby adding an extra layer of security.

                    By admin, ago
                    Ensure Right Education Verification with background and degree check

                    How is education verification check done in India

                    The education verification process is one of the most important aspects of background screening. The workforce of today needs to have some form of educational qualification for their work, be it a blue-collar job or a white-collar one. Understandably, companies might want to trust the applicant’s educational qualification based on the appearance of their documents. However, it is extremely important to legally check any educational claims made by the candidate.

                    The market conditions are increasingly becoming tougher, forcing individuals to resort to any means to get a job. It has been observed that a significant number of job applicants are indulging in misrepresenting their qualifications to make themselves appear as suitable candidates. Unethical practices like degree forgery, false institutes and fake claims are not quite easy to detect, hence raising the need for background verification. India produces an average of 2 to 2.5 million graduates a year. With such an enormous influx of degree holders, it becomes all the more important to have stringent education check policies.

                    Reasons For Conducting Education Check

                    1) Identifying gaps between knowledge and job requirements- The candidates that you hire, must be qualified enough for the position they are applying for. Conducting a thorough screening of the educational background reveals details about the subjects taken up by the candidate and their relevance to the role.

                    2) Safeguarding against fake degrees and diplomas- Diploma mills, providing fake degrees to candidates, are on the rise. These institutions provide fake certification in exchange for money and thus create gaps in the educational system. These institutions are not affiliated with any recognized body or government agency. Rather they partner with independent agencies whose curriculum and standards are not in compliance with the legally dictated norm.

                    3) Confirm authenticity and relevance of foreign degrees- Seeking education in foreign countries is a popular trend among students. The curriculum offered in those countries may not match completely with the job description. Moreover, the authenticity of the foreign educational institutions and the value of their degree must be confirmed as a part of the education verification process.

                    Also Read: Verify the “Master in Deceit” with Education Verification

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                    How Do Companies Verify Education Checks?

                    Education verification of degrees and diplomas is usually conducted at the in-house offices of the institutions. Companies and institutions also rely on 3rd party education check services, as they have their own proprietary databases for verifying the claims of the individual. Several parameters are to be checked and validated while conducting education verification.

                    1) Confirming Name and registration number- This is a form of identity check. By tallying the name and roll number of the candidate with official institute records, one can confirm whether the individual has truly attended the university that is being claimed.

                    2) Verifying course details- This education verification parameter is of critical importance as it forms a direct link between the education the applicant has received and the job role that is offered. This involves making a note of all the subjects that were taken by the candidate and verifying their relevance to the job.

                    3) Year of passing- Many candidates falsify their dates of graduation as young candidates are increasingly sought after by companies. Education verification of graduation records can be easily accessed by contacting the institution mentioned by the candidate.

                    4) Status of graduation- This ensures the quality of the candidate. Candidates with lower grades or drop years are usually not preferred by businesses. The nature of the job may require candidates with high skills and knowledge. Candidates may lie about their grades or hide their drop years. Such discrepancies are to be identified during education verification to ensure high-quality hiring.

                    5) Whether the institution has been declared fake by regulatory bodies- As mentioned above, fake institutions and diploma mills are proliferating. Verifying the authenticity of the educational institute can help safeguard the company against candidates from such dubious institutions. This can be achieved by verifying the institution against details provided by regulatory bodies like UGC.

                    FAQs around Education Verification

                    Education verification check is the process of confirming the authenticity of a candidate’s educational qualifications. This involves verifying the degrees, diplomas, and certificates claimed by the candidate from the respective educational institutions.

                    The process of education verification check in India typically involves:

                    • Document submission: The candidate provides copies of their educational certificates and transcripts.
                    • Direct verification: Contacting the educational institutions directly to confirm the authenticity of the documents.
                    • Database check: Cross-referencing the candidate’s details with databases of accredited institutions and degrees.
                    • Third-party agencies: Engaging third-party verification agencies that specialize in conducting thorough education checks.

                    For an education verification check in India, candidates usually need to submit:

                    • Copies of their degree certificates
                    • Mark sheets or transcripts
                    • Enrollment numbers or registration details
                    • Any additional supporting documents requested by the employer or verification agency

                    Yes, online degrees are verified in a similar manner to traditional degrees in India. The verification process involves confirming the legitimacy of the issuing institution and the authenticity of the degree. Accredited online programs from recognized institutions are treated the same as traditional programs.

                    Some common challenges in education verification in India include:

                    • Difficulty in reaching educational institutions due to outdated contact information
                    • Delays from institutions in responding to verification requests
                    • The prevalence of forged documents and degrees from unrecognized institutions
                    • Lack of a centralized database for educational records

                    Yes, a candidate can fail an education verification check if discrepancies are found, such as:

                    • Mismatched information between the submitted documents and the institution’s records
                    • Forged or fake certificates
                    • Degrees from unaccredited or non-existent institutions

                    Employers benefit from conducting education verification checks by:

                    • Reducing the risk of hiring unqualified candidates
                    • Ensuring compliance with industry standards and regulations
                    • Maintaining a high level of trust and credibility within the organization
                    • Protecting the company’s reputation and avoiding potential legal issues

                    Education verification is not mandatory for all jobs in India, but it is a common practice for positions that require specific qualifications. Employers in sectors such as finance, healthcare, IT, and education often conduct education verifications to ensure candidates meet the necessary academic criteria.

                    By admin, ago
                    Form 16 Verification

                    Form 16: Definition, Importance, & Verification Process

                    Form 16 Background Verification is an important step for any business in the hiring process for a new employee. It can help companies verify that the information the candidate has provided regarding his or her previous compensation is true since it clearly contains every salary transaction, including tax deductions. Therefore, with Form 16 verification, you can fairly determine their new salaries and incentives for when they do start working for your company.

                    About Form 16

                    Form 16 is a certificate that employers issue to their employees to certify that they deduct TDS, which stands for Tax Deducted at Source. At the end of every financial year, the employer has to issue Form 16 which contains the total amount of salary, as well as the amount of tax deducted from an employee’s earnings. Form 16 is also sometimes called a salary certificate.

                    What Is Form 16?

                    Form 16 contains two parts, namely Part A, followed by Part B. Part A contains the Permanent Account Number or PAN of the employee and the employer’s Tax Deduction and Collection Account Number or TAN. It also includes the names and addresses of both parties, as well as how long the employee worked under the employer and the year of assessment. The assessment year for any financial year is the following financial year. For example, the assessment year for 2017-2018 will be 2018-2019.

                    Form 16 - Part A
                    Form 16 - Part A
                    Form 16 - Part A
                    Form 16 - Part A
                    Form 16 - Part A
                    Form 16 - Part A
                    Form 16 - Part B
                    Form 16 - Part B
                    Form 16 - Part B
                    Form 16 - Part B

                    Apart from these details, Part A contains the summary, and monthly details of TDS deducted and deposited by the employer to the government. On the other hand, Part B contains a combined detail of the employee’s salary for the financial year. Salary break up, as well as tax deduction details he or she claims as per Section 80 of the Indian Income Tax Act are mentioned in Part B of Form 16.

                    Why Is Form 16 Verification Important?

                    If any company deducts tax for employees at the source, they are legally required by the Income Tax Act to issue a Form 16. It is one of the most significant tax documents for an employee since it acts as a basis for their income tax return. As such, Form 16 verification can help you make sure that any candidate does not lie about the details of their past compensation. If the Form 16 verification report shows that the candidate’s claims are credible, then you can decide on a suitable salary for them.

                    Form 16 verification can be even more reliable when combined with a Credit Check. Not only will you be sure that the candidate has given authentic information regarding his or her former salary, but you will also be sure, through a credit check, that they are fiscally responsible individuals.

                    How Is Form 16 Verification Conducted?

                    IRDA mandates the due diligence of a prospective agent/PoS to ensure a fraud-free work environment for the companies. Mis-selling and premium pocketing can create negative sentiments towards the industry, among its customers who might not understand the product features and importance.

                    Real-time verifications become more than the need of the hour in such cases, for not only combating agent frauds but also ensuring customer trust and streamlined revenue. The faster the onboarding process, the faster agents can be on the field, pushing new business and gaining new business for your company.

                    If you, as an employer want to conduct a Form 16 verification, you need to verify the amount of TDS deducted for the candidate’s PAN, or Permanent Account Number against their former employee’s TAN or Tax Deduction and Collection Account Number.

                    Here are the details of an individual that can be provided using Form 16 verification:

                    • Name of the individual

                    Using Form 16 verification, you can verify the name of the candidate as it will appear in their associated PAN.

                    • Former employers

                    You can also see a candidate’s former employers using Form 16 verification.

                    • Amount of TDS deducted

                    A Form 16 verification lets you know just how much amount was deducted as TDS for a candidate. At AuthBridge, we can run a thorough Form 16 verification process for you, using our advanced and innovative application program interface.

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                    By admin, ago

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