There are instances when you need to get KYC (know your customer) done. For example, if you want to open a bank account, invest in a mutual fund etc. An Aadhaar KYC maybe the easiest way of going about doing it. The process, called e-KYC, can be done quickly, using your Aadhaar number to verify your identity, address and so on. The Aadhaar eKYC method is an ideal way to complete the process because you will not need to provide multiple documents, take photocopies, self-attest them and so on. The process is also much faster. Of course, since e-KYC is entirely voluntary, you don’t have to do it if you feel that you don’t want a service provider to access personal information about you through Aadhaar.
Aadhaar E-KYC Process
So how to get Aadhaar e-KYC done? Well, Aadhaar card KYC is done using biometric information, mainly fingerprints. The fingerprints are scanned and used to access your Aadhaar and verify your information.
Here is how you can get your e-KYC Aadhaar done online.
– Produce the Aadhaar card to the service providers (banks, financial institutions etc) and they will make note of your Aadhaar number.
– The biometric scanner will now capture your retinal image or your fingerprint.
– You can also opt for the mobile-based OTP authentication method.
– After your biometrics are captured, the value will be communicated to UIDAI.
– This biometric value will be matched with the value that is stored in the database for the particular Aadhaar number.
– Once the values match, it will be safe to assume that your identity is not spurious.
– Upon successful verification of identity, UIDAI will release all credentials like address, photograph, date of birth etc. to the service provider. This will eliminate the need to carry multiple documents with you.
– The agent or organisation can store all the details in their servers and access them as and when need be.
Advantages of Aadhaar-based e-KYC
There are a number of benefits of Aadhaar-based e-KYC. These are discussed below:
Paperless: The biggest advantage of KYC Aadhaar is that it is paperless and allows a service provider to manage the documents with ease and with efficiency.
Secure: UIDAI will only share tamper-proof digital documents through a secure channel. This helps protect the identity of the holder. There is no possibility of getting the documents forged and it also cannot be used without the consent of the service provider or the Aadhaar holder.
Consent-based: UIDAI will only share your information with the service provider after you give consent in the form of an OTP acknowledgment or through a biometric.
Authorisation: Information that is shared by UIDAI will contain authenticated data which makes it acceptable and legal for the parties that are involved in a transaction.
Cost-efficient: The system of e-KYC is paperless and online. It eliminates the physical movement of information and makes it a cost-effective process.
Impact of Aadhaar e-KYC
There has been a strong and noticeable impact of Aadhaar e-KYC in the country. It has been beneficial for customers as well as service providers as it reduces paperwork for both parties. The number of Aadhaar cards issued in the country has increased and the citizens do not need to worry about carrying a lot of documents to the service providers.
The service providers do not have to safeguard tonnes of documents provided by the customers as well. It brings down the cost of operations and maintenance. Service providers can store their information on one server that can be accessed at any point of time as per their needs. There is limited human intervention and the entire process is secure and less prone to fraud. It improves overall efficiency and saves a lot of time and money.
Here are some common questions about e-KYC answered for you.
What is Aadhaar e-KYC?
An Aadhaar-based e-KYC is an electronic process for investors to complete their KYC formality with the service provider by using their Aadhaar number.
Who can do e-KYC through an Aadhaar?
All investors who are making an investment for the first time and have not completed their KYC can do an e-KYC using their Aadhaar number.
What should I do if I do not have a PAN?
Currently the e-KYC process only works for those who have a PAN.
Who will send an OTP on my number and how will I receive it?
The OTP will be sent by UIDAI on the registered mobile number that is available with the Aadhaar database.
I have not received my OTP yet. What should I do now?
The OTP which was sent by UIDAI could be delayed because of network congestion. If you have not received it, you can regenerate the OTP button or restart the process.
Do I need to submit the physical KYC application form or do I need the physical copy of the Aadhaar card?
E-KYC is a complete paperless process. Hence, you do not need to submit the physical KYC application form or a copy of your PAN card or Aadhaar card.
How can I check my KYC status?
You can visit the website of any KYC registration agency and verify the status online.