In the digitalised world full of advanced technology, it is highly important and very essential for a person to have a PDF or an image of their valuable documents on their phone. The reason behind this is to enable them to complete the KYC process without any complications. E- KYC is a procedure whereby the identity of an individual, gender, age, date of birth, etc., can be determined without any physical document.
In this blog, one will be reading and learning about what E-KYC is, the types, the use and the documents required in E-KYC.
What is E-KYC?
E-KYC or Electronic Know Your Customer is a cyber method of producing and initiating the identification of a specific individual without the need for physical documents or even personal visits. This has replaced the KYC process that is paper-based and makes use of electronic documents, biometric verification or OTP authentication to verify the identity and address. The banks, telecom companies and other regulated industries use this process to make the processing faster. A safer and easier method to board the customers.
Types of E-KYC
In India, there are various types of Paperless KYC processes that are used for identification verification. Some of them are:
- OTP Based E-KYC: This is a simple and very quick method of identification, where you can provide your Aadhar number, and an OTP is sent to your registered mobile number. The OTP is used to complete the verification process. This method is convenient as it requires no physical interaction or biometric data.
- Biometric-Based E-KYC: In this method, you have to provide your Aadhar Number and biometrics such as fingerprints or an Iris scan. This data is then matched with the data stored in the UIDAI database for verification. This method is then provided on a higher level of security as biometric data is unique to each individual.
- Offline e-KYC: This is an offline method where you can download a digitally signed XML(computer programming language), which contains your demographic details from the UIDAI website. You can then provide this XML file for KYC purposes. This method makes sure that there is privacy, allowing you to share only specific information without revealing your UID number.
- Video KYC: Video KYC involves the customer and a representative being on a live video interaction. This allows for the customer’s visual verification of identity documents and ensures compliance in sectors like banking.
- Digital KYC: The Digital KYC is used for the online submission of documents, where users upload their identity and address proofs through secure portals.
With the help of the above-mentioned types of online verification, it has improved the convenience, streamlined processes and bolstered security in customer verification across various sectors.
How does Paperless KYC work in India?
The Paperless KYC in India uses the computerised version of the paper for online validation and digital authentication to verify a person’s identity without physical paperwork. To know more on what is the process that needs to be followed for a paperless KYC in India, read below for the steps:
Steps Involved in Paperless KYC:
- Create E-KYC data: To begin with, you can download and save a digitally signed e-KYC file on the UIDAI site that has your name, address, photo and other information.
- Post documents: The agency sellers will have a web portal where they will be able to upload the E-KYC file and all of the other required documents. As an example, you can also be required to post a selfie, signature or a cancelled cheque to verify your bank.
- Enter details: You would be required to enter your personal details and verify your registered mobile number and email address.
- Verify Identity: A verification will be undertaken by sending a one-time password (OTP) to your registered mobile number.
What are the documents required for the Paperless KYC Process?
When the KYC process is done through a paperless procedure, the need for physical documents is minimised. As the process of KYC then completely relies on the computerised identification using some important information like the Aadhar Number and the mobile number, which is attached to the Aadhar card of an individual. All the information and details attached to the Aadhar Card are then fetched and authenticated with the government’s UIDAI database, along with sending an OTP to fully complete the process.
Conclusion
With the quick adaptation of digitalisation in India, all the sectors, including the banking sector too have started with a Paperless KYC process and verification of their customers. This helps them in safeguarding and securing their customers’ data from fraud and misuse. In case you plan to apply for a loan or a PAN Card, you can apply for the same through the E-KYC process.
