What Is eKYC - Meaning, Documentation & Process

e-KYC or Electronic Know Your Customer emerges as a transformative force, revolutionizing how we securely establish identities. Read to know more!

29 Nov,2023 09:08 IST 1885
What Is eKYC - Meaning, Documentation & Process

In the fast-paced digital era, e-KYC or Electronic Know Your Customer emerges as a transformative force, revolutionizing how we securely establish identities. It harnesses the power of technology to streamline and enhance the identification journey. E-KYC represents the digital adaptation of the Know Your Customer protocol, wherein financial institutions conduct procedures to validate and verify customers' personal data. It not only accelerates the onboarding process for various services but also ensures compliance with stringent regulatory standards.

From initiating a bank account to engaging in investments or securing a loan, the e-KYC process has simplified the accessibility of digital financial services and products. E-KYC portals allow seamless verification of identities through digital means, employing cutting-edge techniques like biometric scans and encrypted authentication processes.

e-KYC meaning and its importance

The e-KYC process plays a pivotal role in enhancing security measures as authorized organizations verify customers' identity and address digitally via aadhar authentication. By adhering to KYC protocols, these entities ensure that the information collected from individuals is accurate and reliable. the e-KYC process is carried out by UIDAI agents and organizations are designed to establish the identity of individuals. Strict adherence to these procedures mitigates the risk of identity theft and financial fraud. This commitment to privacy and data integrity not only safeguards individuals against unauthorized access but also assures them that their sensitive information will never be misused. KYC stands as a shield against potential threats, enhancing the security of both individuals and the broader financial system.

Documents required for e-KYC verification

Since this service is accessible online, you only need to provide passport-sized photographs to access e-KYC services. When you grant your service provider electronic access, UIDAI shares your information, including your name, address, gender, and date of birth. As a result, the KYC process is conducted without the need for physical document submission to verify your identity.

When submitting an e-KYC online application via a SEBI-registered intermediary, all you need is your Aadhar number. You must upload a self-attested copy of your e-Aadhar to a KYC registration agency. The KYC portal provides a list of documents that you can refer to for guidance.

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What is the eligibility criteria for the e-KYC process?

You need to have an Aadhar number before applying for the e-KYC process. UIDAI issues an aadhar number and is authorised as per request. You cannot proceed with the e-KYC application or registration in the absence of an aadhar number.

What is the online e-KYC process?

You have two options for completing your online KYC verification: Aadhar-based biometric verification or Aadhar OTP. Choosing Aadhar OTP guarantees a quick completion of the KYC process in just a few minutes. The steps below detail the online KYC verification procedure.

  • Go to the official website of KRA, which is the KYC registration agency.
  • Log in to the website and enter your registered mobile number.
  • Enter the OTP received on the registered mobile number.
  • Make a self-attested copy of e-Aadhar and upload it.
  • Accept the terms and conditions.

If you are opting for an Aadhar-based biometric KYC, you need to follow certain steps.

  • Log in to the KRA website with your registered mobile number.
  • Enter the OTP.
  • Select the biometric authentication online option.
  • Wait for an authorized representative to visit your address.
  • Show your original documents and wait for the approval.

How can I check my online KYC status?

Verifying the status of your eKYC depends on the KYC registration agency that you selected during the eKYC process. Each KRA provides a provision for entering your PAN details to check the application status. While the steps may differ among KRAs, the common requirement is the input of PAN details.

You can complete the e-KYC process through KYC registration agencies such as CAMS. Karvy, NSE, NSDL and CVL.

What are Aadhar paperless offline e-KYC

The Unique Identification Authority of India (UIDAI) has introduced Aadhar Paperless Offline e-KYC as a mechanism that empowers Aadhaar number holders to establish their identity in various applications without the need for paper documentation. This electronic process ensures privacy and security while enabling individuals to use their Aadhaar number voluntarily. Instead of providing a photocopy of the Aadhaar letter, residents can download the KYC XML and furnish it to agencies requiring KYC. The agency, following the guidelines on the UIDAI website, can verify the shared KYC details. These details are presented in a machine-readable XML format, digitally signed by UIDAI, ensuring authenticity and enabling the detection of any tampering.

It's important to note that participation in Aadhaar Paperless Offline e-KYC is optional, and any agency working with individuals can utilize it with the consent of the Aadhaar number holder, facilitating broad application.

To apply for personal loans, it is imperative to have an updated KYC, and you can easily secure loan facilities from IIFL Finance at appealing interest rates. The process can be accomplished conveniently from the comfort of your home. There is no necessity to depend on relatives or friends for financial assistance. With no end-use restrictions, find the optimal solution for meeting all your financial needs through IIFL Finance personal loans.

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