Owing to regulatory advancements in 2020, paperless financial inclusion has become an everyday reality. Whether you are availing a home loan or investing in mutual funds, KYC compliance is essential. However, the integration of UIDAI systems has made this process less time-consuming and hassle-free. Customers can carry out the electronic authentication process without any hassle when availing a new mobile connection, opening a bank account, etc.
Scroll down to get a better idea regarding the Aadhaar KYC verification process, its benefits, and more!
After completion of this process, service providers will get to access your personal details such as name, address, etc. Note that UIDAI also allows the agent to keep a soft copy containing these details stored in their servers so that they can assess them later if required.
After that, UIDAI will share the necessary details in a similar manner with the agent or organisation.
A large number of insurance companies, mutual fund houses, stockbrokers, etc., use e-KYC to verify consumer details.
The paperless e-KYC is basically a secure and shareable document that anyone with an Aadhaar number can use for offline identification. It enables service providers or Offline Verification Seeking Entities to access customers’ details like name, address, date of birth, etc.
With the arrival of the e-KYC process, maintaining all documents has become much easier since it is electronic and paperless. Note that UIDAI does not provide the customers information without their consent; therefore, their privacy always remains protected. In 2019, the Ministry of Finance’s revenue department approved the use of e-KYC, and with that, the identity verification process has become a low-cost affair as well.
Are you still wondering how that is going to help? Refer to the following section to understand it better.
From applying for a credit facility to availing of a new phone number, everything involves producing a number of documents for verification purposes. Naturally, the process tends to get taxing, especially if you have multiple requirements to meet.
However, the incorporation of e-KYC has made things easier for both the service providers and consumers as this service is free from manual intervention and time-saving.
Let’s give you a real-life example to elaborate the system a bit. Suppose you are planning to opt for an insurance policy, and your insurance provider needs to verify some of your personal information. Since the e-KYC is linked to your Aadhaar card, the insurer can easily obtain all necessary personal information.
Apart from ensuring efficiency and convenience, here is a list of benefits that Aadhaar KYC verification offers:
The arrival of e-KYC or Aadhaar KYC verification has expedited the documentation process for financial transactions. Also, due to the lack of human intervention, the procedure inevitably becomes error-free and cost-effective at the same time.
Ans: No, the online e-KYC method is not available to all the agencies as some of them do not even possess the technical infrastructure required for this. Other than that, this method also requires reliable connectivity, which might be an issue for a lot of organisations.
Ans: No, the unique 12-digit identification number is not necessary for this purpose. However, this particular document is considered a single source of verification. That is why you should consider applying for your Aadhaar number and make the most of the e-KYC benefits.
Ans: The details that service providers will be able to obtain are the resident’s name, address, date of birth, photo, reference number, gender details, mobile number and email ID. The data are encoded using a ‘Share Phrase’ that you will get while downloading the e-KYC.
Ans: Even though having an Aadhaar card is necessary for the Aadhaar KYC verification purpose, you do not need to submit any physical copy of the Aadhaar card for that. This is a paperless process and involves the submission of your Aadhaar card number only.
Ans: No, private institutions or agents cannot share or exhibit consumers’ personal details that they obtain from e-KYC. In case something like that takes place, the concerned organisation will be penalised under Sections 17 and 25 of The Aadhaar Authentication Regulation, 2016, Sections 4 and 6 of The Aadhaar -Sharing of Information Regulation, 2016 and Sections 29(2), 29 (3) and 37 of The Aadhaar Act, 2016.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
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.
How to Download Aadhaar Online – From UIDAI, DigiLocker and mAadhaar App
After enrolling for an Aadhaar card, you can download an electronic copy of the Aadhaar from UIDAI... Read More »Aadhaar Card Download by Name and Date of Birth in 3 Easy Steps
Your Aadhaar card serves as a primary proof of your identity and address in India. In case you have... Read More »How to Get Instant PAN Card Through Aadhaar Card – Online Proces
Mr Sharma has been an Aadhaar cardholder for the past few years and plans to apply for a Permanent ... Read More »How to Lodge Aadhaar Card Complaints and Check Status Online
After its introduction in 2010, an Aadhar card became an essential identity document for all Indian... Read More »Apply for an Aadhaar Card Online And Offline – How To Check Application Status
Aadhaar Card was introduced by the Unique Identification Authority of India (UIDAI) in 2010 to prov... Read More »How To Link Aadhaar Card With Mobile Number – Online And Offline Process
Issued by the Unique Identification Authority of India (UIDAI), Aadhaar is a verifiable 12-digit id... Read More »How to Check Aadhaar Authentication History Online – Working and Benefits
The UIDAI's database stores any changes or updates to an Aadhaar card. It is saved under the Update... Read More »Aadhaar Card for NRI – Online Process and Documents Required
Anyone residing in the country can apply for an Aadhaar card if they satisfy the verification proce... Read More »What are The Uses and Benefits of an Aadhaar Card – Services That Require Aadhaar
An Aadhaar card is a biometric document that serves as proof of identity and address in India. It c... Read More »What to Do if You Haven’t Received Your Aadhaar Card: Reasons and Resolution
Mr. Sharma has applied for an Aadhaar card and wishes to link it to his bank account for LPG subsid... Read More »How to Apply for an Aadhaar Card – Application Form and Enrolment Centers
Aadhaar is a unique individual identification code issued by the UIDAI. This document is necessary ... Read More »What is Aadhaar Virtual ID and How to Generate It
Generate your Aadhaar Virtual ID to enhance privacy controls over your Aadhaar data. The UIDAI ro... Read More »Top 10 Chit Fund Schemes in India in 2023
Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »10 Best Gold ETFs to Invest in India in February 2023
Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »Top 10 Demat Accounts in India [Lowest Brokerage Charges]
A Demat account was created to eliminate the time-consuming and inconvenient procedure of purchasin... Read More »20 Best Index Funds in India to Invest in 2023 (Updated on 31st Jan)
What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »Best Arbitrage Mutual Funds to Invest in India: Returns and Taxation
Arbitrage funds are hybrid mutual fund schemes that aim to make low-risk profits by buying and sell... Read More »Best SIP Mutual Funds To Invest In India (2023) – Its Types And Taxation
A Systematic Investment Plan (SIP) is a convenient way to invest a fixed sum in mutual funds. For i... Read More »10 Best Corporate Bond Funds in India 2023 – With Returns
Corporate bond funds are debt funds that invest at least 80% of the investment corpus in companies ... Read More »10 Best Banks for Savings Account in India (2023)
A savings account keeps your money safe, and lets you earn interest every quarter. There are many b... Read More »All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.
Start Small. Dream Big.
Start your Investment Journey with just ₹10