What is e-KYC? - Meaning, documentation, process, eligibility criteria, and importance

As financial products and services have moved online, verification processes have also become fully digital. Regulatory reforms now allow financial institutions to complete customer onboarding entirely online through eKYC, making the process faster and more convenient. From opening a bank account to investing and applying for a personal loan, eKYC has simplified access to digital financial services. With online verification in place, lenders can complete checks quickly, helping applicants move through the personal loan process without paperwork or branch visits. You can check your loan eligibility using just your mobile number and OTP through a 100% online process.

eKYC is the digital version of the ‘Know Your Customer’ process, which the RBI requires financial institutions to follow while verifying customer details. This system helps ensure secure identity verification while reducing manual effort and delays. Understanding how eKYC works and why it matters can help you complete verification smoothly and access financial services with ease.

e KYC full form is electronic Know Your Customer. It’s a digital way for banks and companies to verify your identity without needing paper documents. With ekyc online, your details are verified remotely using your Aadhaar number and biometric data.

The e-KYC process is quick, secure, and fully digital. It helps speed up customer onboarding in banks, NBFCs, and other financial services. Since almost 99% of adults in India have Aadhaar, e-KYC makes verifying identity easy, safe, and convenient for everyone.

Additional Read: What is KYC

• Enhanced security: e-KYC online offers a highly secure method of customer identity verification, ensuring your personal information is protected from misuse.
• Authorized verification: Only select organisations and agents, approved by UIDAI, are authorised to carry out e-KYC verification, ensuring reliable and trusted services.
• Prevention of fraud: e-KYC helps in preventing identity theft and financial fraud by providing robust biometric verification during the process.
• Safest verification: With biometric features, e-KYC is one of the most secure customer verification systems available, giving customers peace of mind.

In India, the e-KYC process allows financial institutions to verify a customer’s identity digitally without physical documents. It is commonly done using Aadhaar-based verification, where your personal details are authenticated online through OTP sent to your registered mobile number or through biometric verification.

Once you provide consent, the system securely fetches your details from authorised databases and shares them with the lender or service provider. This helps institutions confirm your identity quickly and accurately, while reducing paperwork and manual checks.

Because e-KYC is regulated by the RBI, it ensures a standard and secure verification process across banks, NBFCs, and other financial entities. This digital approach makes it easier to open bank accounts, invest, or apply for personal loans, as verification can be completed online without visiting a branch.

• Choose the service provider or lender where you want to complete eKYC.
• Enter your Aadhaar number or registered mobile number, as required.
• Provide consent to use your details for digital verification.
• Verify your identity using the OTP sent to your registered mobile number or through biometric authentication.
• Once verified, your eKYC details are shared securely, and the process is completed online without paperwork.

As e-KYC is a completely online process, you are generally not required to submit physical documents. Once you authorise the service provider to access your details digitally, UIDAI securely shares your basic information such as name, address, gender, Aadhaar number, and date of birth. This makes the e-KYC process paperless and removes the need for in-person verification.

When completing e-KYC with a SEBI-registered intermediary, you are usually required to enter your Aadhaar number and provide consent for digital verification through OTP or biometric authentication. In some cases, you may be asked to upload a self-attested copy of your e-Aadhaar on the KYC Registration Agency (KRA) portal. Any additional requirements, if applicable, are clearly mentioned by the service provider during the process.

Documents commonly used for e-KYC:

• Aadhaar (OTP or biometric-based verification)
• PAN card (for financial services such as investments or personal loans)
• Real-time photograph (selfie), if required by the platform

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 cannot proceed with eKYC application or registration.

• Paperless verification: No need for physical documents, reducing paperwork and manual handling of sensitive data.
• Faster processing: The e-KYC process speeds up identity checks, helping individuals access services like personal loan without delays.
• Enhanced security: Uses Aadhaar-based biometric verification, lowering the risk of identity theft or fraud.
• Remote accessibility: Allows users to complete ekyc online without visiting a branch, ideal for those in rural or remote areas.
• Eco-friendly approach: Digital verification reduces the use of paper, supporting a greener and more sustainable system.

• OTP-based e-KYC:
  Verification is completed using a one-time password sent to the mobile number linked with Aadhaar. This method is quick and widely used for banking and personal loan applications.
• Biometric-based e-KYC:
  Identity is verified using fingerprints or iris scans. This method offers a higher level of security and is often used at authorised centres.
• Video-based e-KYC (V-CIP):
  Verification is done through a live video call where the customer shows identity details and completes real-time checks. This method is commonly used when Aadhaar-based e-KYC is not suitable.

Each type of e-KYC follows RBI guidelines and allows financial institutions to complete identity verification digitally without physical paperwork.

What is the online e-KYC process?

There are two ways to go about the eKYC process for online applications. You have the option of Aadhaar OTP or through Aadhaar based biometric. Both are incredibly quick, easy to carry out, and ensure near instant approval. You can also complete your KYC offline, but 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.

Aadhaar based biometric online application

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

Additional Read: Everything you need to know about Aadhar Card Biometric

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.

The SEBI-registered KYC Registration Agencies (KRAs) in India include:

• NSE KRA
• Karvy KRA
• CVL KRA
• CAMS KRA
• NSDL KRA

Conclusion

e-KYC is a revolutionary advancement in identity verification, offering enhanced security, speed, and convenience. It not only simplifies the verification process but also protects sensitive personal data from fraud. Whether through online or paperless offline methods, e-KYC ensures a seamless experience for individuals accessing various financial and non-financial services. By embracing this digital process, users can enjoy faster service delivery, reduced paperwork, and improved safety, making it a key tool in modernising customer onboarding and verification processes.

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