e-KYC, short for electronic KYC (Know Your Customer) refers to the digital verification of your identity without the need for face-to-face interactions. KYC was introduced to curb fraudulent activities such as money laundering. It involves a series of checks to ensure that the identity of customers is verified before they avail any financial services. With digitalisation, e-KYC is accepted as a suitable and effective method of profile verification.
The e-KYC process is simple, fast, and cost-efficient. Here is everything you need to know about e-KYC verification - how it works, the different e-KYC types, the application process, eligibility criteria, documents required, and advantages.
Step 1: Visit the official website of any KYC Registration Agency, fund house, or bank that offers the service.
Step 2: Fill out the application form and choose among the OTP, biometric, and offline paperless KYC methods to complete the verification.
Step 3: Once the financial institution has access to the details from the UIDAI database, they will verify and confirm your identity.
Among many reasons, e-KYC is important to ensure top-notch security for customers. UIDAI has launched the service to electronically verify the identity of customers so that the data does not fall in the wrong hands. Only select UIDAI-authorised organisations can perform the tasks; hence, you can be assured that the data you share is protected and will not be misused. In addition, e-KYC focuses on preventing identity theft and financial fraud. Therefore, you can completely stop worrying about any data privacy mishap arising from e-KYC. Apart from these, e-KYC is important for opening accounts, purchasing financial products, and claiming the same.
e-KYC is completely digital and uses the Aadhaar database to conduct paperless identity verification of a customer. Hence, you must have an Aadhaar card to opt for e-KYC. Once you place a request to avail a financial service, the institution is mandated to initiate the KYC verification process. If the institution or agency is authorised by the UIDAI (Unique Identification Authority of India), you can opt for e-KYC as your mode of verification. Along with filling in the application for Aadhaar-based verification, you would need to allow the institution to verify your details from the UIDAI database. As this database is already verified, you do not need to provide any other documents and your identity is verified in a matter of minutes at most.
To be eligible for the Aadhaar e-KYC process, you must have an Aadhaar card registered against your name and a mobile number linked to it.
e-KYC refers to the digital verification of data that is already accessible in the Aadhaar database. Therefore, you are not required to provide additional documents along with your application form. However, in the case of online e-KYC biometric verification, you may have to submit your passport-sized photographs while authenticating your biometrics.
There are multiple methods to avail e-KYC. These are as follows:
You can initiate your e-KYC process online using the one-time password (OTP) sent to the mobile number linked to your Aadhaar card. You would need to click on the ‘Generate OTP’ option for the same. Enter the OTP to authenticate your identity and complete the e-KYC process.
You also have the option to complete your Aadhaar KYC verification electronically using your biometrics. For this, you would need to place a request for online e-KYC Aadhaar Biometric Authentication while submitting your registration application. A representative would then visit you at the address mentioned in the application and use a scanner to match your biometric readings with the information on the UIDAI database.
The offline Aadhaar e-KYC process involves the sharing of identity data via XML or QR code. You can share the Aadhaar offline XML document with the financial institution by downloading it from the UIDAI website. The report is encrypted and does not disclose sensitive information that is not pertinent to the KYC verification agency. Alternatively, you can also share the QR code available on your Aadhaar card that can be scanned to access information related to your identity.
Follow the steps mentioned below to check your e-KYC status.
Step 1: Visit KRA’s website.
Step 2: Enter PAN details.
Step 3: The existing status of KYC compliance application would appear on the screen.
Note: If the KYC application is verified , the status will show ‘Verified by NDML’ and if not, the status will appear as pending.
Remember, the eKYC status checking process varies depending on the KRA you opted for. However, you would PAN details to check the process online.
Paperless identity verification or e-KYC has several advantages, namely:
As e-KYC verification can only be offered by institutions verified by UIDAI, it prevents sensitive data from falling into the wrong hands
Scanners used for Aadhaar-based biometric verification are also regulated and managed by UIDAI, thereby ensuring additional security
For availing financial services such as opening a bank account, activating a third-party wallet, etc., e-KYC comes in handy owing to its benefit of instant verification
e-KYC is extremely convenient and saves time
e-KYC is completely free of charge
KYC is a mandatory process that you must complete to access even the most basic financial services such as opening a bank account or getting a credit card. Luckily, with e-KYC services, you can do away with the need to submit additional KYC documents and complete the entire process in a matter of minutes.
Several popular banks, such as the State Bank of India (SBI), Axis Bank, HDFC Bank, RBL Bank, etc., offer e-KYC verification to save your time and money.
You need to apply at the respective KYC Registration Agency, fund house, or bank offering the e-KYC service. Additionally, you may need to provide biometrics if you opt for the online e-KYC Aadhaar Biometric Authentication.
When you opt for e-KYC via Aadhaar-based OTP, a one-time password (OTP) is generated and sent to the mobile number linked to your Aadhaar card. This is known as the e-KYC OTP and is used to verify your identity for the e-KYC process.
e-KYC is a regulatory process that aims to verify the identity of the customer and prevent instances of identity theft and financial fraud. e-KYC is completely digitised and focuses on the electronic verification of documents, which makes it time- and cost-efficient.
Aadhaar e-KYC refers to the process of completing e-KYC using your Aadhaar card. You can either opt for an online or offline e-KYC process using an Aadhaar card based on your preference.
KYC or Know Your Customer is the process that establishes and authenticates the identity of a customer or client. On the other hand, e-KYC is a means to get KYC verified using electronic channels, typically through your Aadhaar card information, in a fast and cost-effective way.
You can check the status of e-KYC by logging in on the KYC verification website and entering the Aadhaar card number used for the application.
e-KYC refers to the digital identity verification of a person before initiating a transaction or availing any financial services. On the other hand, e-sign refers to the electronic signature you do on documents via your Aadhaar database.