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eKYC means digital Know Your Customer verification
Aadhaar number is mandatory for doing eKYC online
eKYC helps prevent identity theft and financial fraud
eKYC helps you get a loan online faster
In a time where financial instruments and offerings have gone completely digital, it only makes sense that verification processes should follow suit. Today, authoritative bodies have made reforms that allow financial institutions to take the onboarding process fully online. This is achieved through the eKYC provision, which streamlines processing for a range of financial services. Right from opening a bank account to investing and even borrowing a loan, the availability of eKYC online has made it easier to access digital financial products and services.
But what is eKYC? Simply put, eKYC means the digitised version of the ‘know your customer’ protocol. KYC is a process that the RBI has made mandatory for financial institutions to carry out when verifying and authenticating a customer’s personal data. There are many benefits to the KYC policy, and these apply to eKYC as well. To know all about them, gain insight into the importance of eKYC, and learn how to get the eKYC process underway, read on.
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To understand the eKYC meaning, it is important to note that it is based on the process by which KYC is done. So, eKYC is when authorised organisations and agents verify a customer’s identity and address digitally via Aadhaar authentication. In other words, eKYC verification is done through a digital mode, and there is no need for physical documentation. eKYC is backed by biometric verification, making it very safe. eKYC plays a key role in online identity verification and with reportedly 99% of the adult population enrolled for a digital identity, eKYC is a smart step towards expediting and securing customer onboarding within the financial sector.
The eKYC provision is important for several reasons, but mainly because of the enhanced security it provides. As customer identity verification is of prime importance, the UIDAI has only permitted select organisations and agents to carry out eKYC verification services. As such, you can rest assured knowing your information will never be misused or end up in the possession of those with malicious intent. Further, eKYC also doubles up on the effort to prevent identity theft and financial fraud. With the provision of biometric verification, it is among the safest customer verification provisions to exist.
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As it is a completely online provision, you may not be required to furnish anything more than passport size photographs to avail a service through eKYC. When you authorize your service provider to obtain your data electronically, UIDAI provides it with details such as your name, address, gender, number, date of birth, and so on. Hence the eKYC process becomes paperless, and you do not require to submit documents physically to verify your identity.
While getting your KYC done online with a SEBI-registered intermediary, you are simply required to enter your Aadhaar number and upload a copy of your e-Aadhaar, which has to be self-attested, to a KYC registration agency (KRA). If any other documents are required, they will be mentioned on the KYC registration agency’s portal.
To be eligible for an eKYC application, you must have your Aadhaar number. This is issued to you by the Unique Identification Authority of India (UIDAI) and will be authorised per request and on explicit consent. Unfortunately, without an Aadhaar number, you can’t proceed with eKYC application or registration.
There are 2 ways to go about the eKYC process for online applications. Here, you have the option of Aadhaar OTP for Aadhaar-based biometric. Both of these are incredibly quick, easy to carry out, and ensure near instant approval. However, in the case of an offline KYC application, it may take up to 7 days for the KRA to approve your application. So, to avoid the hassle, opt for either of the online modes of application using these following steps.
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1. Visit the official website of any known customer registration agency (KRA)
2. Create an account with your personal details
3. Enter your Aadhaar number along with the registered mobile number
4. Input the secure OTP correctly
5. Submit a self-attested copy of your e-Aadhaar
6. Agree to the declaration terms
1. Log on to the KRA’s official website
2. Follow similar KYC request steps as mentioned above
3. Opt for the biometric authentication online option
4. Await contact from an authorised representative at your address
5. Provide biometric verification
6. Show original documentation, which can be done over video as well
7. Await approval of the KYC request
Checking the status of your eKYC depends on the KRA you opted for during the eKYC process. For each application, the KRA will have a provision that allows you to enter your PAN details and check the status. The steps for these will vary from one KRA to another, but the requirement of the PAN should be standard.
You’ll note that online eKYC requires good internet connectivity, and the furnishing of biometrics. As difficulties may arise in this process, the UIDAI has made a provision for an Aadhaar paperless offline eKYC. Here, there is no need for you to provide a copy of your Aadhaar letter. All you need to do is download your KYC XML file and provide it to the agency who requires your KYC.
Considering the importance of eKYC and KYC in general, knowing just the eKYC meaning isn’t enough. This revolutionary provision is aimed at reducing financial fraud and protecting your sensitive personal data. As such, you must ensure to stay updated with any new information and get started with the registration at the earliest if you haven’t already. Completing the process for eKYC online has simplified what would otherwise be a tedious undertaking and there is no reason that you shouldn’t take advantage of that. Another reason to complete your eKYC verification online is that it allows you to avail financial services conveniently.
Offerings like Bajaj Finserv Personal Loan in particular take advantage of this provision and offer expedited loan processing. Here, thanks to the minimal requirement for documentation and the relaxed eligibility criteria, you enjoy perks such as instant approval and disbursal of funds within 24 hours. With this instrument, you can get approved for up to Rs.25 lakh at an attractive interest rate. What’s more, you can choose a repayment plan that suits your capabilities, with a flexible tenor option ranging up to 60 months. This, in addition to the fact that you enjoy a completely transparent loan experience, with no hidden charges whatsoever, make this a well-rounded offering. To start right away and in a hassle-free manner, check your pre-approved offer online.
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