What is Aadhaar e-KYC?

Aadhaar e-KYC has been introduced by the government authorities to make banking process easier because most the people while opening a new bank account are not able to provide all the needed documents, which results in delays in time for opening the bank account. At the time of availing banking services, many people face problems in producing the right documents and their copies or they delay producing such documents leading to a waste of money and time of the person. Therefore, to resolve this problem the government has introduced e-KYC that is linked to a person’s Aadhaar card. In this article, you will read more about Aadhaar e-KYC.

Why link e-KYC to Aadhaar card?

KYC means “Know Your Customers”. Banks demand a lot of documentation from the customers to ascertain correct information regarding their identity and finances. To make this process easy and simple e-KYC services have been introduced. Therefore, the KYC linked to the Aadhaar card helps the banks and other financial institution to ascertain information about a person’s identity and finances through one card.

Advantages of Aadhaar based e-KYC

If the customers do not link their e-KYC to Aadhaar card then they will have to submit an attested address and ID proof and has to be physically present to verify their identities. But if KYC is linked to Aadhaar card, they only Aadhaar card is needed.

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Various advantages of e-KYC are as follows:

  • Paperless process
  • Quicker process
  • Multiple copies of all the documents are not needed
  • Completely safe process
  • No chances of forgery
  • Fewer chances of fraud and theft.
  • This process provides immediate results.

Organizations using e-KYC

There are many organizations such as:

  1. Banking institutions
  2. KYC Registration Agencies
  3. Stock Exchanges
  4. Mutual Fund Houses. Link Aadhaar with mutual fund
  5. Insurance Companies
  6. Trading Accounts
  7. LPG Service Provides
  8. Stock Brokers
  9. Railway Authorities

Application Process

The application process is quite easy.

  • Customers will first have to have an Aadhaar Card for themselves.
  • Then visit the website of the bank and fill an online application form.
  • Also, upload the required documents along with a recent photograph.
  • Enter the OTP and submit the form.
  • Soon the bank will contact the customer for Electronic In-Person Verification. This is a kind of physical verification through the process of real-time video verification.
  • In physical verification, customers will have to take along their Aadhaar card and pan card and their bank statement.

Every Aadhaar cardholder should link Aadhaar to e-KYC. This is due to the reason that Aadhaar based identity is a strong identity proof of a person and also reduces the burden of documentation a person needs to do with the banks while availing financial services.