Everything Need to Know About Aadhar KYC
The UIDAI has come up with the E-KYC service to make improvements to customer services. E-KYC enables an individual with an Aadhar number to allow UIDAI to disclose his / her personal information to service providers who wish to instantly activate services such as mobile connections, bank accounts, etc.
The Impact of E-KYC on Aadhar Enrolment
Individuals who wish to authorize UIDAI to disclose their KYC information to service providers can do so in person either through the use of a One Time Password or via biometric authentication. Once the authentication has been successfully completed upon the consent of the customer, such details as the name of the resident, his / her date of birth, address, gender, email address, mobile number and photograph can be provided to service providers electronically.
Since the E-KYC service is completely electronic and paperless, the management of documents is also eliminated. Moreover, since the KYC data is released to service providers only upon the consent of the customer, his / her privacy is protected at all times. The process is also expected to facilitate speedier transactions while eliminating the need for tedious paperwork. E-KYC is also expected to improve customer convenience while significantly enhancing business efficiency across industries. In addition, E-KYC is also expected to lower the threat of identity misuse while eliminating document forgery.
E-KYC offers benefits to service providers as well as customers. While the customers can avoid the tedium of endless paperwork, service providers can find solace in the fact that they will not have to deal with paperwork themselves, thus eliminating the requirement of photo copies and careful handling of documents. Since the whole process is centralised and the information is stored digitally, service providers and customers can both save money on paper costs. Also, all the information is stored electronically and is machine readable and can be used by service providers for audit, service, etc. The lack of human intervention in the process ensures that the process is error free and a low-cost affair.
Everything about Aadhar Based e-KYC
The number of documents that are needed while opening a bank account or procuring a financial product is a lot, which results in customers spending a lot of time and money on the same. Sometimes they may not produce the right documents or enough copies, ultimately resulting in a waste of time and money. However, the government has taken note of this and in order to make banking experience a little more easier, e-KYC has been introduced that is linked to their Aadhaar card. Having an Aadhar card, is therefore, highly beneficial. This article elaborates on Aadhaar linked e-KYC.
e-KYC:
KYC stands for Know Your Customers and these guidelines were initially provided so as to ensure that banks would not be taken advantage of unduly. A lot of documentation is involved in procuring information regarding a customers identity and their finances, the e-KYC services ensures that these processes are a lot simpler and quicker.
Since e-KYC is linked to the customers Aadhaar card, banks and financial institutions can procure information about an individuals identity and finances through the card itself.
Advantages of Aadhar based e-KYC:
In case customers do not follow the above process, they will have to submit an attested address and ID proof, get email and mobile verifications done along with having to appear in person. But through the Aadhar based e-KYC process, they will only have to provide their Aadhaar card.
Advantages of e-KYC:
The Aadhaar e-KYC has a number of benefits associated with its use, which are listed below:
- It is compliant with government standards
- It promotes a paperless process
- The risk of document forgery is minimal
- It is done with the individual’s authorisation
- Results are in real time and instantaneous
Organizations using e-KYC:
Apart from financial institutions, mutual fund houses, trading accounts, insurance companies, LPG service provides, stock brokers, railway authorities, stock exchanges and KYC registration agencies also use e-KYC.
