Aadhaar and e-KYC
As the evidence of character and verification of address data as of now exist on the Aadhaar database, the UIDAI is endeavoring to give this data to the motivation behind validation when holders apply for any administration that requires such confirmation.
Since the Aadhaar stage is computerized, they have composed an advanced stage known as an ‘e-KYC’ or electronic Know Your Customer benefit.
This administration will enable Aadhaar holders to approve the UIDAI to discharge their statistic data, (for example, their personality and address data) to specialist organizations. The authorization is done through a One Time Password (OTP) or through biometrics.
How This Works
Once the Aadhaar holder has given his/her endorsement to the UIDAI to discharge the data through biometrics/OTP, the UIDAI will discharge a computerized adaptation of the data to the specialist co-op being referred to.
As this data is absolutely computerized, the requirement for physical duplicates of address and character evidence is discarded, making ready for a totally paperless process.
As the data is being discharged by the UIDAI, the specialist organization is guaranteed of the realness of the documentation as it has been liable to confirmation already.
Benefits of e-KYC
The e-KYC service has a number of benefits, as mentioned below:
- Paperless- the e-KYC process is completely paperless, thus the service provider does not have to make arrangement for document management as in the case of physical copies which have to be stored.
- Instant- As soon as the holder intimates the UIDAI that the information is to be shared with a certain service provider and he/she authenticates the transaction, the information is sent through secure channels to the service provider. This eliminates the wait period that providing physical documents generally requires.
- Eliminates forgery- the possibility of submitting forged documents is eliminated as the UIDAI sends across only a tamper-proof digital copy. Thus the holder’s information is secure and cannot be forged or used without consent in any transactions by the service provider.
- Based on consent- the information will be shared with the service provider only after UIDAI receives explicit consent from the Aadhaar holder in the form of a biometric or OTP acknowledgement.
- Non-repudiable- the information sent by the UIDAI contains the holder’s digital signature as well as the UIDAI’s authentication and unique signature, thus making it impossible to revoke or recant by the parties involved in the transaction.
- Cuts cost- as the system is paperless, the need for expensive storage and protection of documentation is eliminated, making this a cost effective process.
The e-KYC process was initiated in the month of May 2013, with a number of organisations and entities adopting it for their business needs, making for a seamless and secure service delivery process that benefits the end user as well as the Aadhaar holder.