What is Aadhar eKYC?
Aadhaar eKYC is an online method for verifying an individual’s identification using their Aadhaar number.
This eliminates the need for physical papers, expediting and simplifying the verification process for both enterprises and consumers.
Aadhaar eKYC uses biometric and demographic data, which improves the accuracy of identity verification as compared to previous techniques that rely on physical documents.
This accuracy is critical in lowering the danger of fraud and identity theft, assuring safe financial transactions.
Furthermore, Aadhaar eKYC has played an important role in promoting financial inclusion, particularly in rural areas where traditional KYC processes were sometimes a barrier.
Benefits of e-KYC
There are several benefits of e-KYC, but the most important ones are:
- Swift and Convenient
- Reduces the need for documentation
- Reduces the risk of fraud and loss of documents
- Can be done remotely, which saves time and effort
- Reduces the expense of physical verification operations
- Simplifies the verification process for clients
Procedure for Aadhaar eKYC Online
The Aadhaar eKYC process can be completed either online or offline, and both options are paperless.
Process of Aadhaar e-KYC procedure online is as follows:
1) Authentication with biometrics
Customers who pick biometrics for Aadhaar e-KYC verification needs to follow the below-mentioned steps.
Step 1: Give your service provider your Aadhaar card. They will take note of your Aadhaar, or Unique Identification Number (UID).
Step 2: They will use a biometric scanner to capture and read your fingerprint or retinal image.
Step 3: This value is then sent to the UIDAI, which compares it to the value already connected with your Aadhaar in its database.
Step 4: Once your values align, your identity is effectively formed.
Once the verification process is completed, UIDAI will give the service provider access to your personal information, such as your date of birth, address, and photograph.
The UIDAI also allows the agent to maintain a soft copy of such information on their servers, which they can access as needed.
2) Authentication with mobile OTP
Here’s how to do KYC Aadhar with mobile OTP. One can alternatively utilize the OTP-based authentication approach, which is described below.
Step 1: Show the service provider your Aadhaar card.
Step 2: The UIDAI will send you an email with an OTP to your registered cell phone number.
Step 3: Enter the OTP into the device provided by your service provider.
Following that, the UIDAI will provide the information to the agent via biometric authentication.
Now, let’s see in which industries the Aadhaar eKYC process is useful.
Applications for Aadhaar eKYC
Aadhaar eKYC, a powerful digital identity verification method, has transformed the way people and companies conduct a wide range of operations throughout India.
Its adaptability and efficiency have made it widely used in a variety of industries. Let’s look at its various applications:
Digital Identity Verification
Aadhaar eKYC is an effective tool for establishing and certifying digital identities in a society that is becoming increasingly digital.
It enables individuals to safely access a wide range of online services, including e-commerce websites and government portals. Individuals may confidently explore the digital world thanks to the seamless validation provided by eKYC.
Furthermore, Aadhaar eKYC is used to provide digital signatures, which ensure the legitimacy and legality of digital documents and transactions. This function has a substantial impact on legal and corporate operations, making it easier to perform transactions and sign agreements online.
Opening Bank Accounts and Financial Services
Aadhaar eKYC makes it easier to open bank accounts by eliminating the time-consuming documentation that is sometimes needed in traditional account opening.
This simpler strategy, which makes banking more accessible to more people, not only reduces administrative expenses for banks but also enhances financial inclusion. It is a critical step in ensuring that everyone can participate in the official financial system.
Furthermore, financial institutions employ eKYC to verify the identity of loan applicants swiftly. This accelerates loan approvals and disbursements, which is especially important during times of financial necessity or emergency. The efficiency provided by eKYC benefits both financial institutions and consumers.
Mobile SIM Card Activation
Aadhaar eKYC has significantly transformed the telecommunications sector.
The activation of mobile SIM cards, which was previously time-consuming, has been modernized. Individuals can go to a telecom outlet, enter their aadhaar number, and complete the eKYC process, which results in immediate activation of their mobile connections.
This not only simplifies the onboarding process for new customers, but it also improves security by guaranteeing that SIM cards are supplied to real users.
Government Schemes and Subsidies
The government’s Direct Benefit Transfer (DBT) scheme uses Aadhaar eKYC to provide subsidies and social benefits directly to eligible beneficiaries. This strategy reduces leakage and corruption by guaranteeing that subsidies reach their intended receivers.
By linking their Aadhaar to their pension accounts, retirees and pensioners benefit from streamlined pension distribution, which reduces delays and ensures timely money
Signzy’s Aadhar ekyc API
Signzy is transforming digital onboarding for financial institutions and organizations by offering a platform that improves speed, accuracy, and the overall digital onboarding experience. Their no-code GO platform enables fully customized workflows, seamless multi-channel onboarding, and fraud prevention. Signzy streamlines the onboarding process and assures regulatory compliance.
FAQs-
1.Which organisations use Aadhaar E-KYC?
Today, numerous service providers use the Aadhaar E-KYC technique to validate consumer information. This facility is used by financial institutions such as banks, mutual funds, and insurance firms, among others.
2.Is E-KYC secure?
Yes, E-KYC is a secure transaction because UIDAI transmits the personal data over an encrypted network.
3.How to Check e-KYC Status?
To check your e-KYC status, go to the UIDAI website. Once you’ve accessed it, you’ll need to enter your Aadhaar number and any other relevant information. The system would display your current e-KYC status, indicating whether it was pending, completed, or required extra steps.
