Based on Aadhaar Card and PAN Card, e-KYC is a paperless method of authentication which is done online and helps minimize forgery of documents. It permits you to authorize the process of KYC (Know Your Customer) in an electronic manner. Doing e-KYC enables personal verification of documents, speedily on the internet. Today even payment wallets necessitate you to complete the KYC process before utilizing the wallet for payments, recharge, or transfer of money.
Its significance can be illustrated with the example of SEBI guidelines on the purchase of mutual funds, which have been mandated to procure KYC of customers for this purpose. However this was a big hurdle a few months ago till the concept of e-KYC was not introduced, but today it is quite easy to verify the identity and address of customers with e-KYC.
How to Register for e-KYC?
To initiate the registration process, you need to visit the authentic online portal, supported by KYC Registration Agencies (KRAs).
- A new portfolio needs to be created with a valid email address and enter the required details. You may also be required to upload the necessary documents like e-Aadhar, PAN Card and digital signature.
- After this step, you will be redirected to the Aadhaar Card number authentication window, wherein you have to enter the OTP (One Time Password) in the required field. OTP will be received on the registered mobile number
- This step will be followed by the submission of a self-attested copy of the e-Aadhaar, PAN Card.
- The registration process will complete after verification and validation of the information from UIDAI, the Unique Identification Authority of India.
What is the Process Behind e-KYC?
The process authorizes the UIDAI digitally, to share customers’ demographic details along with encrypted photographs and digital signatures to the service providers. The process is done by verification and match by UIDAI’s agency, Central Identities Data Repository, which considers attributes like Aadhaar numbers, details, biometrics and OTP. Now, if the data submitted matches the available data stored in records, the process of validation is treated as authentic and successful.
What are the Benefits of e-KYC?
Below listed are the benefits of e-KYC:
- Storage and document handling cost is eliminated along with minimization of the risk of forgery.
- The procedure of KYC is completed within just a few minutes.
- Investment in mutual funds has gone very smooth and easy with e-KYC as one can easily invest up to Rs 50,000 instantly with OTP based validation. However, there is no upper limit of investment if one opts for biometric-based validation.
- Some banks have also started e-KYC which helps customers in speedy transactions including the instant opening of bank accounts in India.
- This method of personal information authentication is very safe and does not compromise security.
Doing your KYC is a must for availing of banking and financial services apart from other benefits. By following the above-mentioned steps, you can get done with KYC verification online quite easily.