The digital age has modernised many vital services we use daily, upgrading them to be faster and more cost-effective. Among these is e-KYC, or Electronic Know Your Customer.
E-KYC is the digital version of the Know Your Customer (KYC) process used in financial institutions. This highly secure and efficient process lets you verify your identity for financial transactions using your Aadhar number.
This article will explore eKYC meaning, types, and application process.
What is eKYC?
The e KYC full form is Electronic Know Your Customer. It is a digital service that verifies your identity via Aadhar authentication.
The e-KYC mechanism is provided by the Unique Identification Authority of India (UIDAI) and allows instant verification of the Aadhar number holder’s identity. It is the modern, paperless version of the Know Your Customer protocol mandated for all financial institutions by the RBI (Reserve Bank of India).
Since e-KYC is a paperless process, it significantly reduces the costs associated with the traditional Know Your Customer process.
Benefits of e-KYC
E-KYC provides several benefits, including:
1. E-KYC is cost-effective as it lets you avail identity verification and authentication processes without charging fees.
2. E-KYC provides immediate results in just a few minutes due to its digital and paperless nature.
3. The e-KYC ensures easy and secure authorisation. Your UIDAI information is provided to the relevant parties only after you give approval through secure methods like OTP or biometric verification.
4. E-KYC reduces the risks of document forgery due to its secure digital procedures and authentication requirements.
Types of e-KYC
There are several types of e-KYC methods used in India to verify a person’s or organization’s identity. These e-KYC types include:
1. OTP-based e-KYC: In this method, you provide your Aadhar number to get an OTP to your registered mobile number. You then use this OTP to complete the verification process. OTP-based e-KYC is the most convenient type for most people as it requires no biometric data or physical interactions.
2. Biometric-based e-KYC: In this method, you provide your Aadhar number along with biometric data like fingerprints. The provided data is used for verification by matching it with the data stored in the UIDAI database. Biometric-based e-KYC ensures high security due to the unique biometric data requirements.
3. Offline e-KYC: This method is unique due to its offline nature. You download a digitally signed XML with your demographic details from the official UIDAI website. This XML file can then be provided wherever KYC is required. This method allows you to ensure your privacy without revealing your UID number.
Eligibility Criteria For e-KYC
If you are a resident Indian citizen with an Aadhar number, you automatically qualify for e-KYC and only have to complete the application process.
Additionally, Non-resident Indians and foreigners who have been living in India for 182 days in the twelve months before applying for Aadhar are also eligible for e-KYC.
Document Requirements For e-KYC
As e-KYC is an entirely digital and paperless mechanism, it requires no documentation. You only require your Aadhar number to get your KYC done online. You will be asked to upload a self-attested copy of your e-Aadhar to the KYC registration agency (KRA) of your choice. Any other document requirements will be mentioned on the KRA’s portal.
Additionally, you may have to provide a passport photograph to avail e-KYC services.
How to Apply For e-KYC
It is easy to apply for an e-KYC. Follow the steps given below for a hassle-free e-KYC registration process:
1. Visit any SEBI-licensed KRA’s official website (Know Your Customer Registration Agency).
2. Create your personal account by filling in the required details.
3. Provide your personal details, including your Aadhar number and registered mobile number.
4. Enter the provided OTP and complete the verification process.
5. Submit a self-attested copy of your Aadhar card.
6. Visit the KRA’s web portal and input your PAN number to keep up with your application status.
How to Check Your e-KYC Status
Follow the straightforward steps given below to check your e-KYC status:
1. Visit the official Central Depository Service Limited (CDSL) website.
2. Click on ‘Inquire Your KYC.’
3. Fill in the required details, including your PAN or Aadhar number.
4. Enter the provided captcha.
5. Click ‘Submit’.
After completing this process, your e-KYC verification status will appear. If your application is verified, your status will show as ‘Verified by NDML.’ Otherwise, your status will appear as ‘Pending’.
Wrapping Up
The fast, paperless, and secure services provided by e-KYC make it an invaluable mechanism for both customers and organisations. Understanding the meaning of eKYC will help you benefit from this modern and efficient way to easily verify your identity during financial transactions.
Start your journey towards realising your financial dreams today with Tata Capital’s flexible personal loans at attractive interest rates.
To learn more, check the Tata Capital website or download the app.
FAQs
E-KYC of Aadhar is an electronic service that verifies your identity using your Aadhar card. This mechanism is provided by the Unique Identification Authority of India (UIDAI) and provides authenticated instant verification of the Aadhar number holder’s identity.
All resident Indian citizens are eligible for e-KYC. The e-KYC process requires an Aadhar card and a linked mobile number. Non-resident Indians and foreigners can also be eligible for e-KYC if they qualify for Aadhar (living in India for 182 days in the twelve months before applying for an Aadhar card).
The authentication process does not charge any fees. Each e-KYC transaction that involves sharing the e-KYC information of the Aadhar number holder is charged Rs. 20. The 2024 Economic Survey showed that companies have experienced increased ease in the e-KYC process by using Aadhar card services, lowering the cost from Rs. 1,000 to less than six rupees.
E-KYC is perfectly safe as it requires customers to go through biometric authentication, including checking for the customer’s photograph, fingerprint, or iris scan. In most cases, customers are asked to submit a selfie, and its authenticity is verified via the latest technology like live facial recognition.
10 March 2025
4 mins read
Previous Post
