What is e-KYC: Aadhaar eKYC Online and Offline Process
e-KYC or the digitised version of Know Your Customer (KYC) enables financial institutions to verify their customers’ personal data. eKYC has made it easy for customers and financial institutions to open a bank account, invest money, get a loan or for other financial services and products.
Read on to get all the details on eKYC documents as well as student ekyc. Let’s dive in!
What is e-KYC?
e-KYC (full form – Electronic Know Your Customer) is a customer verification process. Authorised agencies (such as financial institutions) access Aadhaar card information to verify name, address, phone number, etc. This is done to get a better understanding of the customer’s identity, prevent fraudulent activities, etc. Online KYC also helps reduce the time taken to onboard customers.
How Does e-KYC Work?
The financial institution starts the eKYC verification procedure as soon as a customer wishes to use a financial service. eKYC is a UIDAI-accredited verification technique (Unique Identification Authority of India). In addition to filling out the Aadhaar-based verification application, you must let the institution validate your information from the UIDAI database. This database has already been confirmed, so you don’t need to provide any evidence. The identity is verified in minutes at most.
How to Apply for e-KYC?
Aadhaar e-KYC Online Process
One can apply for e-kyc online and offline by following the steps below:
- Step 1: Apply to online e-kyc by making an application at the website of any of the SEBI-licensed KRA’s which include CDSL Ventures Ltd, DotEx International Limited etc.
- Step 2: Create your account
- Step 3: Fill personal details like Aadhaar Card number, enter registered phone number to receive OTP for verification purpose.
- Step 4: Once verified submit a copy of the self attested Aadhaar card
- Step 5: In order to check the status enter your PAN number at the KRA’s web portal.
Aadhaar e-KYC Offline Application Process
- Step 1: Visit UIDAI portal for offline aadhar ekyc application
- Step 2: Enter ‘Aadhaar Number’ or ‘VID’ and security code
- Step 4: Select send OTP’ or ‘Enter TOTP’
- Step 5: The OTP will be sent to the registered Mobile Number associated with the given Aadhaar number or VID. TOTP will also be accessible via UIDAI’s m-Aadhaar mobile application. Enter the received OTP/TOTP.
- Step 6: After entering your Aadhaar/VID, generate a 4-character Share Code. A ZIP file containing the Resident’s Paperless Offline eKYC will be password protected using the same Share Code. The important thing to remember here is that the “Share Phrase” must be provided to agencies in order for KYC data to be read. After entering a Share Code, which is the ZIP file’s password, click the ‘Download’ button.
- Step 7: The digitally signed XML will be transferred as a Zip file to the device where the following steps have been completed.
Also Read
What are the Different Types of e-KYC?
The several eKYC types are shown below.
1. OTP Based Aadhaar eKYC
The customer must first register their mobile number to use OTP-based Aadhaar authentication. During Aadhaar eKYC, the customer first agrees to the process on a verification platform. They then generate an OTP sent to their Aadhaar-linked phone number. When this OTP is entered, the customer’s Aadhaar is checked, and the service provider gets a push of the customer’s identifying information from the UIDAI database.
2. Biometric Based Aadhaar eKyc
In biometric authentication, a scanner takes a picture of your fingerprints or retina. These are sent to UIDAI and checked against the biometric information kept with the customer’s Aadhaar number. After the match is confirmed, UIDAI sends the customer’s identifying information to the verification service provider safely. The verification service provider then verifies the information.
3. Aadhaar Paperless e-KYC Offline Process
Identity information must be shared through XML or QR code as part of the offline Aadhaar e-KYC procedure. By downloading it from the UIDAI website, you can share the Aadhaar offline XML document with the financial institution. The report is highly secured and does not disclose details which are not pertaining to the KYC agency, also one can share the QR code available on the Aadhaar card if one wants to get your details.
How to Check e-KYC Status?
You can check your e-KYC status by visiting the KYC Registration Agency (KRA)’s website and following the given procedure:
- Step 1: Visit the official website of Central Depository Service Limited (CDSL).
- Step 2: Click on ″Inquire Your KYC″ page to check your KYC status.
- Step 3: Enter your credentials to log in. For instance, your Aadhaar Card Number is required to check your KYC registration status. However, if your registration is done with a PAN Card, you must enter your PAN to check the status.
- Step 4: Type the given CAPTCHA and press submit.
- Step 5: The next window will display your current KYC verification status.
How to Change KYC Details Online?
You can change or update your KYC details online by visiting the eKYC portal and following these steps:
- Step 1: Visit and log in to your bank’s online website.
- Step 2: Go to settings and select ″Update KYC″.
- Step 3: Fill in all the required details here.
- Step 4: Upload scanned copies of documents required for verification.
- Step 5: You will receive an OTP on your mobile number. Enter the OTP to complete verification.
- Step 6: Click on Submit to complete the verification process.
Why is e-KYC Important?
The following reasons highlight the importance of e-KYC for individuals:
- e-KYC ensures a way more secure data verification and authentication than other methods.
- Only authorised agents and organisations can conduct an e-KYC verification. Therefore, customers do not have to worry about sharing information with the wrong people.
- e-KYC also secures individuals from identity theft and related crimes.
- This is a digital and more efficient verification process than conventional manual methods.
- The e-KYC process does not require many documents. It verifies an individual’s identity with only an Aadhaar card. This makes the verification process faster and more convenient.
Documents Required for e-KYC
For Indian Individuals
The following documents of identification must be submitted to register for eKYC Online:
- Photos the size of a passport
- Canceled cheque
- Identity proof – Aadhaar card, PAN card, passport, driving license or voter ID.
- Proofs of address – Aadhar card, voter ID, or driving license.
For NRI’s
For NRIs, the following documents must be turned in:
- The Foreign Office, a Notary Public, and the Indian Embassy all signed off on the passport.
- The Foreign Office, the Notary Public, and the Indian Embassy signed off on the Residential Visa.
What are the Eligibility Criteria for e-KYC?
Individuals must have an authentic 12-digit Aadhaar card number and a phone number linked to the Aadhaar card to be eligible for eKYC. UIDAI uses this number to access and verify the customer’s identity.
Before utilising online eKYC, private entities must first obtain UIDAI authorization. In addition, they must pay an additional 25 lakh rupees for an eKYC license. Each eKYC verification costs 20 rupees. However, private entities can continue to use offline eKYC techniques.
What are the Advantages of e-KYC?
Here are the advantages of e-KYC:
1. Automated
The online e-KYC verification process is entirely automated. Real-time KYC data transfer does not require any manual involvement. A paper-based KYC procedure can take days or weeks to verify information, but an electronic KYC process needs a few minutes.
2. Secured
According to a recent report from the RBI, commercial Indian banks reported fraud of 1.85 trillion in the fiscal year 2019–2020. With the implementation of e-KYC, this figure decreased by 25% from 2020 to 2021.
3. Convenient
Thanks to e-KYC, it is now easy for financial companies and people to open bank accounts and Demat accounts. Because this process uses an encrypted server, there is no way for fraudulent activities to happen.
4. Paperless
Document management is no longer necessary because e-KYC is a paperless solution that gets rid of this need. Using less paper is good for the environment and also brings down the cost of KYC compliance as a whole. The e-KYC solution also keeps customer information safe and keeps documents from getting lost.
Aadhar e-KYC and Government Regulations
- In September 2018, the Supreme Court issued a landmark decision prohibiting private entities from using Aadhar eKYC for verification.
- Following that, UIDAI granted Aadhaar eKYC to private establishments for authentication purposes.
- The Aadhaar and Other Laws (Amendment) Act, 2019, established the framework for online KYC verification, wherein individuals voluntarily use their Aadhaar numbers to authenticate their identities, either through Aadhaar-based online KYC or offline eKYC.
- As a matter of fact, the new strict requirements allow KYC verification online only for private entities that have been verified by the UIDAI, preventing the misuse of your Aadhaar data.
Difference Between Aadhaar authentication and Aadhaar e-KYC
Aadhaar authentication is the process of verifying a user’s personal information (birthdate, name, mobile number, and address) against the Aadhaar database. This only returns yes or no depending on whether or not the details matched. Whereas e-kyc is a process that uses a person’s biometric and/or otp to request a person’s individual details from the Aadhar database (i.e. name, DOB, address, Aadhar card pdf, photo, etc.).
FAQs
An e-KYC will be finished in 2-3 business days, but a traditional offline KYC may take up to 7–14 business days.
Your information will be secure if you use the services of any of the KRAs indicated above. However, using the services of any of the 3P KYC merchants that have been approved, such as Paytm, will also be secure.
Giving the service provider identifying documents such as a voter’s ID, PAN card, passport, etc., will suffice for identity authentication. All of these documents could still be false, and it’s possible that they won’t be quickly verified offline. The document verifier must have faith in the person creating the document because there is no technical way for it or the data it contains to be authentic. While UIDAI has safeguarded and digitally signed the XML file created by the Aadhaar number holder using Aadhaar Paperless Offline e-KYC. As a result, while conducting the offline verification, the agencies or service providers can validate the file’s demographic contents are authentic.
Service Providers will not divulge, publish, or display any XML file, Share Code, or related information to a third party. According to the Aadhaar Authentication Regulation (2016) Sections 25 and 17 and Aadhaar -Sharing of Information Regulation (2016) Sections 6 and 4, and Aadhaar Act (2016) Sections 29(2), 29(3), and 37, any non-compliance with these activities would result in strict actions.
• Step 1: Visit and log in to your bank’s online website.
• Step 2: Go to settings and select ″Update KYC″.
• Step 3: Fill in all the required details here.
• Step 4: Upload scanned copies of documents required for verification.
• Step 5: You will receive an OTP on your mobile number. Enter the OTP to complete verification.
• Step 6: Click on Submit to complete the verification process
The process of electronically verifying the customer’s credentials, also known as paperless KYC, is known as eKYC. This is required for anyone who wishes to use the services of a financial institution.
It is critical to keep your KYC documents up to date. The central bank has simplified the process of updating or re-KYC on a regular basis.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
