KYC Through Aadhaar:
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What is Aadhaar Card KYC and E-KYC?
Aadhaar Card KYC is a very basic but compulsory process required for mobile connections and in financial institutions. The Aadhaar card is a good way to complete this process as you do not have to provide multiple documents for each type of proof such as identity proof, address proof, etc. Aadhaar card is a small but effective document for this process.
However, verifying the details of Aadhaar takes some time as you need to visit each centre to submit your card and get it verified. In such cases, E-KYC is highly helpful as institutions and companies do not need you to come and verify the details mentioned on the card. This is because they are accessing these details directly through UIDAI, meaning it’s already verified. This makes the whole process quicker and easier.
This service has modernised the process along with offering the freedom to customers to disclose their Aadhaar information to service providers. This is a convenience for both existing and new customers of various companies and banks.
Aadhaar E-KYC Process:
There are three ways you can complete Aadhaar E-KYC. The first and basic way of doing that is to be present at the time of E-KYC. The second and third ways are relatively less time-consuming as you can do that online through the One-Time Password (OTP) or through biometric verification. As soon as the verification is completed, the details to the service provider are sent electronically.
E-KYC of any individual holds equal significance like any other physical document. This comfortably keeps up with the Information Technology Act, 2000. In addition, electronic documentation is also much safer than paper documents as the data cannot be stolen or tampered with under any condition. Aadhaar E-KYC is also accepted by the Ministry of Finance under the PML (Prevention of Money Laundering) Rules.
Impact of Aadhaar E-KYC:
UIDAI has issued reports stating the number of issued Aadhaar cards for individuals within the country. The numbers have gone up to 40 crore since 2013. This is a positive effect of the Aadhaar enrolments across the country.
Aadhaar E-KYC benefits both service providers and customers as it reduces the paperwork on both sides. Customers do not have to worry about carrying a load of documents and service providers do not have to store and safeguard tonnes of documents provided by customers. This reduces maintenance and overall operational costs as well. Any service provider can store their customer information on one server which can be accessed anytime as per their need. Moreover, limited human intervention also makes the whole process secure and less prone to frauds and mistakes. This gives immediate results and improves overall efficiency.