PAN API is much easier when compared to Aadhar API, which includes the customer’s name, PAN number and mobile number for verification.
Even though the Aadhar API is made available, it often causes friction in a customer’s journey because it involves OTP authentication where it is forwarded to the registered mobile number. This takes the customer to the UIDAI site to download the XML file of their Aadhar and then upload it into the system. It is quite a headache. Therefore, it is essential to go for biometrics or online verification in such cases. But, online verification is unstable. And its restoration of services takes time. Thus, NBFCs can face problems in accessing the document for verification.