Unique Document Identification Number (UDIN) and ICAI
Unique Document Identification Number (UDIN) is a computer system generated unique number for validating documents certified or attested by a Chartered Account.
Why is Unique Document Identification Number (UDIN) introduced?
There have been many complaints that financial documents and certificates certified by persons misrepresenting themselves as Chartered Accountants are presented to various authorities. Many Banks and Financial Institutions were misguided in this way by fraudsters to secure loans and advances. There have also been complaints about forged signatures of Chartered Accountants. Unique Document Identification Number (UDIN is launched to eliminate such malpractices and safeguard the interest of various stake holders.
The innovative idea of UDIN was conceived by the Professional Development Committee of ICAI. Unique Document Identification Number to validate certificates and documents attested or certified by practicing Chartered Accountants will become mandatory from 1st January, 2019.
It is learnt that ICAI is in talks with Indian Banks Association (IBA) to advise member banks to resort to the verification of UDIN to ensure authenticity of documents certified by Chartered Accountants.
What is the Institute of Chartered Accountants of India (ICAI)?
The Institute of Chartered Accountants of India (ICAI) is a statutory body which is mandated to regulate the profession of Chartered Accountants (CA). ICAI was set up under the Chartered Accountants Act, 1949, an Act of Parliament. ICAI regulates the profession of Chartered Accountancy through a stringent Code of Ethics. Transparency, accountability and responsibility are integral components of the ethics to be followed by Chartered Accountants.
How can a CA register for generation of Unique Document Identification Number (UDIN)?
ICAI has launched a website with URL https://udin.icai.org/ for generating UDIN. The first step towards generation of UDIN is registration in the website.
Full time Practicing CAs can register themselves by vising the site. They should provide their six digit membership number, Date of Birth and date of Enrollment. After successful validation of credentials provided, an OTP will be sent to the member at the e-mail ID and mobile phone registered with ICAI. By entering OTP, the CA can complete the formalities of registration.
How can a Unique Document Identification Number (UDIN) generated?
The registered member of ICAI, after login must click “Generate UDIN” option and provide the following details.
Details such Client Reference Code/Number, Document Issued, Document Description, Date of Document and 3-5 Keywords/Values (minimum three) within the document shall be provided. Firm Registration Number (FRN) is Optional. Based on the OTP send to the member, the formalities can be completed. A preview option is provided for verification and correction, if any. On submission of details, a UDIN will be generated and the CA can use that UDIN on the document for which it has been generated.
Data once submitted will not be permitted to be edited. However, UDIN can be revoked or cancelled with proper narration of reason for cancellation.
Key values can be any financial figure extracted from the attested statement or certificate. It can be any value such as Turnover Net profit, Import amount, Export amount, Duty refund, Refund, Net worth, Capital, Revenue, Input tax credit, Loan amount, Total Assets, Net owned funds, Profitability Ratios, Capital To Risk Asset Ratio (CRAR), Statutory Liquidity Ratio, Gross fixed assets, Net loss, Misc. expenditure, Total capital investment, Sanction amount, Other etc contained in the document certified.
A registered member can generate any number of UDINs.
What is the algorithm for the Unique Document Identification Number (UDIN)?
The algorithm for the UDIN comprises of the following:
1. The Membership Number of the Member attesting the document/ certificate.
2. The Date (dd/mm/yy) when certificate is issued.
3. The Document Serial Number allotted automatically by system.
The Unique Document Identification Number is a 15 digit number. Of this, the first six digits will be the membership number of the attesting CA. The next six digits will correspond to the date in DDMMYY format. The remaining digits will be a system generated serial number.
What are the advantages that UDIN offers to other stake holders?
Other stakeholders like Regulators, Banks, Financial Institutions, third parties etc will be provided access to verify the UDIN. Through UDIN and the key fields as mentioned by CAs, stake holders will be able to verify the genuineness of the documents, reports or certificates submitted to them. At the home page of the said Portal an option to search UDIN is provided. On stating the UDIN of the certificate or document to be verified, the key values mentioned in the document will be displayed and the same can be cross verified with that in the certificate or document to ensure genuineness.
