Ever wondered what Aadhaar KYC is?When you go through many routine procedures like opening a bank account, obtaining a credit card, opening a demat account or even applying for a loan, you may be required to undergo a KYC or Known Your Customer process. There are many ways to do this, and an Aadhaar-based e-KYC process may be one of the easiest options.
e-KYC (electronic Know Your Customer) is the process by which businesses verify the identity of their customers using electronic or digital channels. It typically involves the use of digital documents and electronic authentication methods to confirm the identity of an individual or an entity.
The e-KYC process can be done online or through mobile apps. It not only helps businesses comply with regulatory requirements for customer identification and verification but also streamlines the onboarding process for new customers. This is because it allows businesses to verify the identity and other vital information remotely rather than requiring in-person visits and the submission of physical documents.
Aadhaar e-KYC means a process that is used in India to digitally verify the identity of an individual using their unique 12-digit Aadhaar number. It is implemented for a variety of purposes, including opening bank accounts, obtaining mobile phone connections and applying for loans or other financial products. It is also used by businesses to comply with regulatory requirements for customer identification and verification.
Since the data has already been verified by the UIDAI, it allows businesses to verify their customers without any extensive use of limited resources like time and effort. It also saves customers the trouble of providing a ton of paperwork to verify their ID, age, address, etc.
The e-KYC process typically involves providing your Aadhaar number to the service provider. You then need to give your consent to the business to access your biometric data and other personal information stored in the Aadhaar database. This information is then used to confirm your identity and complete the KYC process.
There are different ways to carry out the Aadhaar e-KYC process online and offline. Check out these alternatives below.
Aadhaar e-KYC can be done online via OTP authentication or biometrics authentication. Here are the details.
The steps outlined below show how Aadhaar e-KYC can be done via OTP authentication.
Step 1: Provide your Aadhaar number to your service provider.
Step 2: Once they enter your Aadhaar number in their database, you will receive an OTP from the UIDAI on your registered mobile number.
Step 3: Once this OTP is entered in the device of the service provider, your identity will be verified.
And now, here is how your identity can be verified via biometrics authentication.
Step 1: Submit the details of your Aadhaar number to your service provider.
Step 2: They will then use a biometric scanner to scan your fingerprint or retinal image.
Step 3: The UIDAI will then receive this data and check if the values match the details in the Aadhaar database.
Step 4: If both the values match, your identity will be verified right away.
It is also possible to perform Aadhaar e-KYC offline using a paperless method or a QR code. Let’s get into the details of how to do this using the former paperless method offline.
Step 1: Visit the official website of the UIDAI.
Step 2: Enter your Aadhaar UID or VID and the security code shown on the screen.
Step 3: Click on the ‘Send OTP’ option.
Step 4: Enter the OTP you receive on your registered mobile number.
Step 5: Download the Aadhaar XML file that contains all your details like your name, gender, address, date of birth, email and mobile number. This file is digitally signed by UIDAI, and comes protected by a 4-character share code for extra security.
Step 6: Share this XML file with your service provider. The provider can then verify your identity using the details in the file.
If this sounds like too much of a hassle, you can opt for offline Aadhaar e-KYC using a QR code. Here is how this works.
Step 1: Offer your Aadhaar card to your service provider.
Step 2: They will then use a mobile scanner to scan the QR code on your Aadhaar card.
Step 3: This then extracts all your identity-related information from the UIDAI database and helps complete the offline e-KYC verification.
All in all, the use of Aadhaar for e-KYC (Know Your Customer) purposes has proven to be a convenient and efficient way for businesses in India to verify the identity of their customers. By leveraging the unique 12-digit Aadhaar number and biometric data of the individual, businesses can complete the KYC process remotely, without the need for in-person visits or the submission of physical documents.
Aadhaar e-KYC (electronic Know Your Customer) is a process in which businesses in India can verify the identity of their customers using the unique 12-digit Aadhaar number and biometric data of the individual. To begin with, you need to provide your Aadhaar number to the service provider. The business then initiates a request to the UIDAI, which is the government agency responsible for issuing and maintaining the Aadhaar number.
The agency sends an OTP (one-time password) to your registered mobile number, which you need to provide to the business along with your consent to access your biometric data and other personal information. The business uses the OTP to access your information from the UIDAI’s database and confirms your identity, thus completing the e-KYC process.
Aadhaar e-KYC verification is a process in which businesses in India can verify the identity of their customers using the unique 12-digit Aadhaar number and biometric data of the individual. The process involves the business accessing the individual's personal information from the UIDAI’s database after obtaining their consent. This information is then used to confirm the identity of the customer. The process allows businesses to verify the identity of their customers remotely and facilitates compliance with regulatory requirements related to customer identification and verification.