what is e kyc and how it works

Understanding e-KYC: A Detailed Guide

February 26, 2024 • 3745 views

Online e-KYC has been the game changer in the identity verification process. It leverages digital technology to verify customers' details online. Since its inception, the e-KYC has enhanced convenience for individuals and businesses, leading to increased security. This blog delves into the importance of online e-KYC. But first, let's understand what e-KYC is.  

What is e-KYC?

Electronic Know Your Customer or e-KYC is a modern approach that companies have implemented into their system to verify the customer's address and identity virtually. The PAN and Aadhaar numbers are primarily used by companies for the identity verification process since it is provided by the government and ensure maximum authenticity.

Why is e-KYC Important?

The introduction of online e-KYC has helped organisations to leverage technology and simplify the entire process of verification. Multiple factors justify the importance of Electronic KYC. These include:

  • It has enhanced security significantly. Online KYC reduces the chances of frauds like identity theft.
  • It takes less time and simplifies the process of identity verification.
  • With the latest biometric verification, Electronic KYC is the most reliable and safest way to verify customers.

Documents Required for e-KYC Verification

There is no specific document required to complete the process of e-KYC, as it is done digitally. However, some companies may still ask you to upload the following crucial documents:

  • eAadhaar
  • A picture of your PAN card
  • A picture of yourself, where your face is properly recognisable
  • An image of the first page of your Bank passbook or a cancelled Cheque

What is the Eligibility Criteria for e-KYC?

Firstly, you must make sure that the Aadhaar Card is linked with your phone number. Or else you will not be able to proceed with your online KYC.
People often get confused if UIDAI and Aadhaar numbers are different, but they are not the same. Thus, the 12-digit number on your Aadhaar card is also your UIDAI. Your Aadhaar card is an essential document for your e-KYC verification. Companies use your Unique Identification Authority of India (UIDAI) number to fetch your data.

What is the Online e-KYC Process?

The e-KYC online process can be done in two different ways, and for both, you need to have an Aadhaar Card. You can either choose to complete your online KYC with the Aadhaar Biometric or OTP.

1. For e-KYC with Aadhaar OTP

The steps are as follows:

  • Step 1: Visit the official KRA (KYC Registration Agencies) website.
  • Step 2: Sign up with your personal information.
  • Step 3: Provide the UID number and mobile number linked with your Aadhaar Card.
  • Step 4: Fill in the OTP received on your linked contact number.
  • Step 5: Submit your e-Aadhaar after self-attesting it and agree with the terms.

2. For e-KYC with Aadhaar Biometric

Follow the below steps:

  • Step 1: Visit the official KRA website and log in.
  • Step 2: Provide the UID number and mobile number linked with your Aadhaar Card.
  • Step 3: Fill in the OTP received on your linked contact number.
  • Step 4: Submit your e-Aadhaar after self-attesting it and agree with the terms.
  • Step 5: Click on verification with Biometric.
  • Step 6: Wait till an authorised person visits your address.
  • Step 7: Complete your biometric authentication.
  • Step 8: Show your original Aadhaar Card.

The online KYC process usually takes a maximum of 24 hours to get approved. Whereas offline KYC takes almost 7 days to get approved.

How Can I Check My Online KYC Status?

There is no particular process to check online KYC status as it completely depends on your KYC Registration Agency (KRA). However, almost every e-KYC portal has an option, where you submit the PAN number to check your KYC status.

There are only five SEBI-registered KRAs in India. They are as follows:

  1. NSE KYC Registration Agency
  2. NSDL KYC Registration Agency
  3. CAMS KYC Registration Agency
  4. Karvy KYC Registration Agency
  5. CVL KYC Registration Agency

When Can You Opt for Offline Paperless e-KYC?

To complete your KYC online, you need a good internet connection and biometric equipment. However, if you are not equipped with the technology, then offline e-KYC can be done. You can choose for offline paperless e-KYC facilitated by the UIDAI. In this method of verification, you don't need to submit your Aadhaar copy. You just need to download the XML e-KYC file, fill it up and submit it to the financial institution.

Also Read - Understanding KYC: Definition, Types, and Significance

To Conclude

Online e-KYC is becoming vital as every business is adopting digitalisation. There are numerous advantages of e-KYC, such as an easy online process, less time, reduced chances of fraud, etc. Moreover, with various companies in the market, you can easily opt for e-KYC.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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