It makes sense that financial instruments and offerings are now entirely digital, so verification processes must follow suit. It is now possible for financial institutions to completely take over the onboarding process online with the help of authoritative bodies that have completed reforms. By implementing eKYC, which streamlines the handling of a range of financial services, it is possible to achieve this goal. eKYC access has made it much easier to access digital financial products and services in today’s digital world, whether opening an account with a bank, investing, borrowing a loan or checking the loan application status.
The eKYC is the electronic version of the ‘know your customer protocol. To verify and authenticate the personal information of a customer, the RBI has made KYC a part of a mandatory process imposed on all financial institutions. A KYC policy has many benefits, which are also applicable to electronic KYC. To learn more about them, understand the meaning and process of electronic KYC, and figure out how to get started with it.
What is e-KYC?
The electronic KYC procedure, also known as electronic know your customer or your client, entails the process used to perform KYC. In other words, eKYC is when an authorised organisation or agent verifies a client’s identity and address through Aadhaar authentication to establish customer trust and a sense of security. Therefore, eKYC verification can be carried out through a digital model, and no physical documentation is required. Biometric verification is used as part of eKYC, making it a very safe process. Biometric verification is an essential part of the online identity verification process. It has been reported that 99% of the adult population has registered for digital identity, which makes eKYC a viable and secure way of financing the onboarding of new customers in the financial sector.
Importance of e-KYC
A provision for eKYC is important for various reasons, but primarily due to enhanced security. To ensure the security and confidentiality of customer information, several organisations and agents have been permitted to provide eKYC services by the UIDAI. Therefore, you can rest assured that your information will not be misused or in the hands of individuals with malicious intentions. eKYC further contributes to the fight against identity theft and financial fraud by doubling down on its efforts. With biometric verification as part of its provision, it is among the safest customer verification tools.
Documents required for eKYC verification
Due to the fact it is an entirely online process, passport-size photographs may be all that is required as an eKYC user. UIDAI provides information such as your name, gender, address, date of birth, number, etc., to your service provider when you authorise it to access your data electronically. Consequently, eKYC becomes paperless, and you don’t have to physically present documents to verify your identity. KYC registration can be done online with a SEBI-based intermediary by simply entering your Aadhaar number and uploading a copy of your self-attested e-Aadhaar to a KYC registration agency (KRA) to authorise it to carry out the KYC process on your behalf under SEBI guidelines. On the KYC registration agency’s web portal, the KYC registration agency will provide you with information regarding any other documents required.
Eligibility criteria for the eKYC process
If you want to be eligible for the eKYC application process, you must have your Aadhaar number. You will receive this number from the Unique Identification Authority of India (UIDAI). You can access it on request and based on your explicit consent. Unfortunately, you cannot proceed with the eKYC application or registration if you don’t have an Aadhaar number.
What is e-KYC online?
The biometric-based on Aadhaar OTP can be used here for Aadhaar-based biometrics. Neither of these methods requires much effort, and both can be carried out within a short period. Nevertheless, for an offline KYC application, you may need to wait up to seven days for your application to be approved by the KRA.
How does Aadhaar paperless offline e-KYC work?
A good internet connection and the submission of biometrics are requirements for online eKYC. UIDAI has provided an Aadhaar paperless offline e-KYC because difficulties may arise during the online process. Your Aadhar card is not needed in this situation. Your KYC XML file must be downloaded and provided to the agency requiring your KYC.
The purpose of this revolutionary provision is to reduce financial fraud and protect people’s sensitive data. However, if you haven’t already done so, you should stay updated with any new information, and you should get started with the registration as soon as possible. There is no reason why you should not take advantage of the fact that e-KYC can now be completed online, which has simplified a job that would have otherwise been arduous. Furthermore, completing your e-KYC online will allow you to easily access financial services such as opening an account with a bank, investing, borrowing a loan or checking the Bajaj Finance loan application status.
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