Aadhaar Based e-KYC: KYC Process, Benefits and Working

Last updated:
Aadhaar Based e-KYC: KYC Process, Benefits and Working

Aadhaar-based e-KYC is a paperless identity identification technique performed with the individual's consent. It requires utilizing biometric and demographic information obtained during the Aadhaar registration process, which is stored in the UIDAI database to verify identity.

By utilizing Aadhaar-based e-KYC , you may avoid having to submit several papers to confirm your identity, domicile, age, and so on. Aadhaar is a comprehensive record that has all of this information. Let us walk you through the steps of completing your e-KYC using Aadhaar.

Steps of completing your e-KYC using Aadhaar

  • Step 1: The consumer shows the bank official his Aadhar card. The official records the Aadhaar number.
  • Step 2: A biometric scanner takes a prospective customer's fingerprint or retinal picture, albeit the fingerprint is the more common option. Mobile OTP-based authentication techniques are now accessible as well.
  • Step 3: Once the biometric is read by the device, the value is sent to UIDAI via secure servers.
  • Step 4: The biometric value entered is compared to the value contained in the database for that specific Aadhaar number.
  • Step 5: If the values match, it's fair to conclude the prospective customer's identification is genuine.

Following successful verification of the client's identification, the UIDAI will provide all of his credentials, including as pictures, addresses, dates of birth, and so on, to the bank or agent, removing the need for the consumer to carry around additional papers. The UIDAI allows the agent/organization to maintain a soft copy of all the information in their remote server, allowing the agent/organization to retrieve it as needed.

Different Types of Aadhar eKYC

1. e-KYC with OTP

This is a straightforward and fast way in which you enter your Aadhaar number and an OTP is issued to your registered cellphone number. The OTP is required to finish the verification procedure. This approach is handy since it does not need any physical contact or biometric data.

2. e-KYC Based on Biometrics

This approach requires you to supply your Aadhaar number as well as biometrics like as fingerprints or iris scans. For verification, this data is compared to that held in the UIDAI database. Because biometric data is unique to each person, this approach gives a better degree of security.

3. e-KYC offline

This is an offline technique in which you may download a digitally signed XML file from the UIDAI website containing your demographic information. You may then use this XML file to verify your identity. This solution protects your privacy by enabling you to share just particular information while hiding your UID number.

Advantages of Aadhaar eKYC

Not everyone is eligible to utilize eKYC verification services. The Aadhaar-based eKYC approach is only available to agents and institutions that have been validated by UIDAI. This implies that as long as eKYC is utilized, your credentials will never get into the hands of anybody with harmful intent. 

Even roadside kiosks now offer cellphone sim cards after obtaining copies of your identification and residence confirmation. This is not a secure situation. eKYC removes the danger of identity theft and fraud. Apart from this Aadhaar eKYC has a few more benefits:

  • UIDAI would also have to verify the biometric scanners used by agents/institutions, adding another degree of protection.
  • eKYC often enables fast verification and, as a result, the establishment of bank accounts or the activation of mobile SIM cards. This is intended to save a significant amount of time.
  • The eKYC procedure is completely free.

The distinction between Offline Authentication and Aadhaar e-KYC

The Unique Identification Authority of India (UIDAI) provides Aadhaar Authentication and Aadhaar e-KYC services to authenticate your identity. They vary in many ways, including:
Aadhaar-based e-KYC

The Aadhaar e-KYC procedure allows access to personal information such as the resident's gender, name, address, and date of birth. The information of the resident are compared to those in the UIDAI database. The UIDAI only distributes data that is essential to prevent unauthorized data use. e-KYC provides a quick and paperless way to certify your identification.

Offline Verification

Only the UIDAI database is used to verify your identity using Aadhaar Authentication. Personal information is not shared throughout the procedure. The method compares the information to the UIDAI data and returns a 'Yes' or 'No' response depending on the information's availability.

  • What is Aadhar eKYC and what are the government regulations?

  • Are there any charges for e-KYC services?

  • Who qualifies for eKYC?

  • Why is eKYC required?