Aadhar KYC refers to “Aadhar Know Your Customer. Since Aadhar Card linking to various utilities and services is fast catching up, the idea and implementation of e-KYC using Aadhar is an excellent move to cut down on the paper-work as well as time frame for the entire KYC process.
The logic behind this is very correct. Aadhar Card already have verified data of a person, including the BioMetircs. Now all that is required is for the Aadhar Number to be Linked to a Bank Account and there is no further need for KYC – Since the 3 crucial things in a KYC process:
- Establishing a person’s Identity
- His/Her permanent residence
- Photo ID proof
Are already taken care by the Aadhar KYC process. All the data is available and hence it will cut-down on the time. PAN proof maybe simply asked if the service provider requires it separately. But that is about it. Imagine the paper work and time saved?
- Aadhaar number is compulsory for one using Aadhaar E-KYC.
- Scanning of fingerprints is done using bio metric machine readers.
- Finger prints of the individual are being matched with his Aadhar card by the bank or insurance company OR via an OTP as deemed suitable by the service providing agency.
- UIDAI seeks user consent for releasing his personal information to service provider.
- If everything is okay system transfers information to the service provider resulting in completion of the process.
eKYC Aadhar – More on the Positive Initiative:
When a person has to open a bank account, get a mutual fund, etc KYC is now mandatory. The main problem is he has to submit a list of documents such as address proof, ID proof of others.
To avoid this work The Ministry of Finance, Government of India has approved paperless authentication or E- KYC. Hence E-KYC Aadhaar aims to expedite the process of “Know Your Customer.”
The following details can be verified and re-entered if changed while applying for a new bank account:
- ID Proof of an individual
- Address Proof of an individual
- Mobile number of an individual
By this the traditional way of carrying files and documents of various proofs can be avoided and necessary changes can also be made reducing the time of both customers and employees.
Using E-KYC Aadhar service, residents can authorize UIDAI for releasing data to service provider either in person ( bio-metric authentication) or online (OTP authentication). Any changes in the personal data then only requires updating the Aadhar Data – which is a simple process and can be done completely online.
Click Here to Check the Aadhar Updation Process
Organizations using Aadhaar E-KYC & UIDAI’s Role:
- Bank accounts
- Trading houses
- Mutual Fund Companies
- Insurance companies
UIDAI E-KYC features:
- A pro-poor approach is followed to make it as easy as possible for even the lower income section of the society.
- Process to ensure that there are no duplicates.
- Online authentication provided.
- Data transparency maintained – However the customer can select whether or not to allow the eKYC data being released to an organization or not.
Other Possible Applications of Aadhar and Aadhar KYC:
- Aadhar based attendance in Government offices using bio-metrics
- Passport application verification through Aadhaar E-KYC using bio-metrics
- Aadhar based E-KYC for: Bank account opening, Mobile connection
- Ration disbursal (PDS) through bio-metric verification
The Aadhar KYC tries to make every Indian’s life hassle free and slightly less complicated.
Explore this site for further info on Aadhar Card and solve your Aadhar Related Queries.