What is e-KYC? Meaning, Documentation, Process, Eligibility

In the digital age, processes are becoming more streamlined and efficient. One such process is e-KYC, which stands for electronic Know Your Customer. This paperless, digitised method of verifying an individual's or organisation's identity via Aadhaar authentication has revolutionised how we interact with banks, financial institutions, and other entities. In this blog, we will understand e-kyc meaning, the process, and its eligibility criteria.

Let's Understand e-KYC?

E-KYC (full form) Electronic Know Your Customer is a digitised and paperless verification process of an individual's or organization’s identity via Aadhaar authentication. It is the digital form of the traditional 'Know Your Customer' protocol mandated by the Reserve Bank of India (RBI) for all financial institutions. This process ensures that customers' identities are verified quickly and efficiently without the need for physical documents.

The UIDAI (Unique Identification Authority of India) provides a mechanism to verify and authenticate the Aadhaar cardholder's identity through the online e-KYC service. This process relies on the information provided to UIDAI to generate the unique 12-digit Aadhaar number, allowing financial service providers to digitally verify your identity.

Why is e-KYC Important?

E-KYC is crucial for several reasons:

• Efficiency: It simplifies and streamlines the customer verification process, significantly reducing the time, cost, and effort associated with traditional KYC processes.
• Security: e-KYC ensures your data is secure and private, accessible only to authorised agents and financial institutions. It reduces the risk of fraud and identity theft by ensuring that only genuine and verified customers are onboarded.
• Convenience: Biometric verification adds an extra layer of security to your personal information, making it easier and safer to verify your identity.E-KYC Process

The e-KYC process involves several steps that can be completed online or offline. Here's a breakdown of the different types of e-KYC:

1. Online Aadhaar e-KYC by using OTP

This method involves the following steps:

1. Log on to the known KYC registration(KRA) agency's official portal.

2. Create an account using your personal information.

3. Provide your Aadhaar number and the mobile number linked to your Aadhaar card.

4. Enter the OTP sent to your mobile number.

5. Submit a self-attested copy of your e-Aadhaar.

6. Read the declaration forms and click 'Agree' to finish the process.

2. Online e-KYC Aadhaar Biometric Authentication

This method involves biometric verification and can be completed as follows:

1. Visit any known KRA's official website.

2. Create an account and provide your Aadhaar and mobile numbers.

3. Select the biometric authentication online option.

4. An authorised representative will contact you to schedule a house visit.

5. Provide biometric verification.

6. Furnish original documents, which can also be done over video.

7. Wait for the KYC request approval.

3. Aadhaar Offline Paperless e-KYC

If you wish to do offline registration, you can follow this process:

• Download your KYC XML file from the UIDAI website.
• Provide the XML document to the agency requiring your KYC.
• Alternatively, share the QR code available on your Aadhaar card that can be scanned to access your identity information.

Also Read: Instant 50,000 Loan - How to Get 50,000 Rs Loan Urgently?

Benefits of e-KYC

E-KYC offers several benefits:

• Privacy: You need a reference ID to access your data and complete e-KYC verification. The UIDAI signs each e-KYC document, which can only be opened by licensed entities.
• Security: UIDAI regulates and manages biometric verification for Aadhaar-based KYC, ensuring the secure handling of your data.
• Accessibility: E-KYC is simple, easy, and quick, and there are no charges associated with it, as the entire process is online.
• Mandatory for Financial Services: e-KYC is necessary to avail of any financial services, from opening a bank account to trading in equities and opening e-wallets.

Also Read: What is an Instant Digital Personal Loan?

Eligibility Criteria for e-KYC

To be eligible for e-KYC, you must have an Aadhaar card. The UIDAI provides a 12-digit unique identification number, which is essential for the e-KYC process. Without an Aadhaar card, you cannot proceed with e-KYC.

Documents Required for e-KYC Online

Since e-KYC involves digital verification of data already accessible in the Aadhaar database, additional documents are not needed. However, to verify e-KYC biometrics online, you may need to submit passport-sized photographs during your biometrics verification.

Working of e-KYC

The e-KYC process does not need a copy of an Aadhaar letter. When you choose a financial service, the institution starts the process of e-KYC verification. You must fill out the Aadhaar-based verification application and allow the financial institution to verify your information from the UIDAI database. This process ensures that your identity is verified within minutes without requiring additional documentation.

How Can I Check my Online e-KYC Status?

To check your e-KYC status online, follow these steps:

1. Visit the official website of Central Depository Service Limited (CDSL).

2. Click 'Inquire Your KYC' to check the e-KYC status.

3. Provide the required details, such as your Aadhaar number or PAN.

4. Enter the captcha and click 'Submit'.

The requested e-KYC verification status will appear on the screen. If the KYC application is verified, the status will show 'Verified by NDML'. If it's not verified, it will show as 'Pending'.

Steps to Apply for e-KYC

You can apply for e-KYC by following these steps:

1. Visit the official website of any KYC Registration Agency, bank, or fund house that offers the service.

2. To complete the verification, fill out the application form and select an option from the biometric, OTP, and paperless offline KYC methods.

3. Your identity will be verified and confirmed once the financial institution accesses the details from the UIDAI database.

Conclusion

E-KYC is a modern, efficient, and secure way to verify your identity for financial transactions. By understanding what e-KYC is, its process, and its eligibility criteria, you can take advantage of this digital service to streamline your interactions with banks and other financial institutions.