Aadhaar Based e-KYC: Meaning, Working, Status and Benefits
Recently, Jay has opted for LPG subsidy under the Pahal scheme, for which having an Aadhaar card is mandatory. He found out that manual Aadhaar KYC verification is a tedious procedure, involving the submission of several self-attested photocopies. To avoid such hassle, he can opt for Aadhaar-based e-KYC. This digital identification procedure is quick and convenient.
What Does Aadhaar-based e-KYC Mean?
Aadhaar-based e-KYC is the same as submitting your KYC documents for identity verification, except that it is a digital procedure. This paperless authentication method will verify your identity, provided you have given consent. It confirms ID using the demographic and biometric information recorded during Aadhaar card registration. The information is stored in the UIDAI database.
UIDAI has already verified such details, and you do not have to go through attestations and extensive paperwork. Since an Aadhaar card serves as a valid Know Your Customer (KYC) document, you don’t need to present multiple documents as proof of age, address proof, or ID proof.
How Is Aadhaar e-KYC Different from Aadhaar Authentication?
Are you interpreting Aadhaar-based e-KYC and Aadhaar authentication as the same process? Well, no! There is a slight difference in their functioning.
1. Aadhaar authentication
Such a procedure stores all demographic and biometric details of your Aadhaar in CIDR (Central Identities Data Repository). This vault cross-checks the submitted information with the details obtainable within it. However, service providers cannot access your demographic data, which creates a problem in the completion of the authentication procedure.
2. Aadhaar-based e-KYC
Under this method, service providers can obtain your private data such as name, date of birth, gender and address from the Aadhaar database and finish the identity verification procedure themselves.
The e-KYC through Aadhaar is a simpler and time-saving procedure, ensuring a smooth experience for users. Understand this process in the next section!
How Does Aadhaar Based e-KYC Work?
You can finish your Aadhaar e-KYC verification through the online or offline mode.
1. Online mode for Aadhaar e-KYC
There are two vital online methods through which you can verify Know Your Customer. They are as follows:
1. Using biometric authentication
Follow the below-mentioned steps for this procedure:
- Step 1: Give your Aadhaar card copy to the service provider so that they can note down your Unique Identification Number (UID).
- Step 2: Now, they will scan your iris and capture your fingerprint data using a biometric scanner.
- Step 3: Your service provider will inform you of the value of UIDAI. The existing value that is linked with your Aadhaar in the UIDAI database will be matched with the input value.
- Step 4: After the values get matched, your identity establishment will be successful.
After completion of the verification process, UIDAI will allow your service provider to access your photograph and other details, such as your address and date of birth. UIDAI also permits the agents to maintain a soft copy of the data in their servers. Hence, agents can obtain such details whenever required.
2. Using mobile OTP
You can opt for an OTP-oriented authentication procedure in the following way:
- Step 1: Submit your Aadhaar card copy to your service provider.
- Step 2: You will get an OTP from UIDAI on your registered mobile number.
- Step 3: Your service provider will give you a device on which you will be typing your OTP.
After this, your agent will get all relevant information from UIDAI.
2. Offline mode for Aadhaar-based e-KYC
Do not worry if the online procedure is not feasible. Service providers will use any of the following offline KYC verification methods. Paperless process via offline e-KYC:
You can follow this procedure for Aadhaar-based e-KYC:
- Step 1: Go to UIDAI’s official website
- Step 2: After typing your UID/VID and security code, press ‘Send OTP’
- Step 3: After receiving OTP on your registered number, enter it and download Aadhaar XML. It includes information such as name, hashed mobile number, email ID, address, date of birth and gender. It is protected with a four-character Share Code and has UIDAI’s digital signature.
- Step 4: You will then have to give the XML file to your service provider for verifying your ID with the file’s machine-readable data.
This method minimises the cost related to paper-based verification and increases the efficiency of the official identification process. Scroll through to know the advantages of Aadhaar-based e-KYC!
How Is Aadhaar e-KYC Beneficial?
Besides being time-efficient and paperless, Aadhaar e-KYC provides the following benefits:
- The authentication procedure is free of cost.
- Data received from the Aadhaar database has already been verified and requires no additional authentication.
- The digital documents submitted are shared through a protected channel, eliminating the possibility of unethical replication.
- UIDAI only permits registered agents and institutions to utilise the Aadhaar-based e-KYC verification service. Hence, your personal information won’t be compromised. In addition, UIDAI also verifies the biometric scanners of service providers.
- This procedure requires your consent. The requesting party can receive information from UIDAI only after your approval of the same through a one-time password or biometrics.
How to Track Aadhaar KYC Status?
If you are availing of any financial facilities, you will have to follow KYC regulations first. In case you are not sure whether you’re KYC compliant, check it in the following manner:
- Visit the official portal of a KRA (KYC Registration Agency)
- Provide details of PAN (Permanent Account Number)
You will instantly know your KYC status after this. If you are not KYC compliant, you can opt for the procedure using Aadhaar-related biometrics.
Final Word
The launch of Aadhaar has given way to fraud deterring techniques and paperless verification. The Indian population can now be digitally tracked and recorded. Needless to say, Aadhaar based e-KYC is another praiseworthy initiative of the government─ trying to relieve people from the tedious manual verification process.
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FAQs
Ans: Yes, agents and private institutions are legally forbidden from publishing, exhibiting or sharing offline e-KYC information such as Share Code and the XML file. They may have to bear a penalty under the following provisions for disclosing any confidential data:
Section 37, Section 29(3) and Section 29(2) of the Aadhaar Act, 2016
Section 25 and Section 17 of the Aadhaar Authentication Regulation, 2016
Section 6 and Section 4 of the Aadhaar – Sharing of Information Regulation, 2016
Ans: During manual verification of documents (including identity proof documents such as passport, voter ID card, driving licence and PAN), it becomes difficult to validate the document’s authenticity. Applicants can easily present unnoticeable fake versions. That said, UIDAI has digitally signed and protected the XML file that is used for offline Aadhaar-based e-KYC. Agents can verify a file’s content using XML Reader and finish the process.
Ans: You can check your Aadhaar application status in the following manner:
Go to UIDAI’s official portal
Press ‘Get Aadhaar’ and select ‘Check Aadhaar Status’
Provide your 14-digit Enrolment Number to check whether your Aadhaar has been generated
Specify the time and date of enrolment as mentioned on the acknowledgement slip
Type the CAPTCHA code and press ‘Check Status’
Your screen will display the status instantly.
Ans: You can download a PDF version of your Aadhaar from UIDAI’s official website. However, you need to give your Aadhaar password while opening the file. Your password consists of your name’s first four letters in capital and your birth year (YYYY format). After entering your password, you can download the PDF copy of your Aadhaar card.
Ans: The minimum age to apply for a biometric Aadhaar card is 5 years. However, there exists a ‘Baal Aadhaar Card’ for newborns and kids below five years, for which biometric verification is not applicable. The Baal Aadhaar is blue in colour.
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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