Understanding eKYC: What You Need to Know

Posted on Wednesday, April 24th, 2024 | By IndusInd Bank

What is eKYC? 

eKYC, meaning Electronic Know Your Customer, is the method employed by financial institutions to remotely authenticate the identity of customers without the need for physical documents or in-person visits. This process involves using digital documents, biometric authentication, and government databases to confirm the identity of individuals opening bank accounts or accessing financial services online.  Customers can open a savings account or apply for a loan quickly and conveniently from anywhere, without the need to visit a physical branch, by completing the eKYC process online. eKYC simplifies the onboarding process, reduces paperwork, and enhances security and compliance measures for banks while providing convenience for customers. 

Benefits of eKYC 

The following are the various advantages of eKYC: 

1. Efficiency: eKYC allows banks to verify customer identities quickly, enabling faster account opening processes. It enhances customer satisfaction and reduces wait times. 

2. Cost Effective: It reduces the costs associated with manual verification processes, such as paperwork, storage, and human resources. This contributes to improving the bank’s operational efficiency and profitability. 

3. Enhanced Security: eKYC employs advanced encryption and biometric authentication methods. These methods ensure a higher level of security than traditional paper-based verification methods, thus protecting customer data from fraud and identity theft. 

4. Improved Customer Experience: By streamlining the account opening process and reducing the hassle of paperwork, eKYC offers a more convenient and seamless experience for customers, leading to higher customer satisfaction and loyalty. 

Explore Online Savings Accounts – Different Types of Savings Accounts 

List of Documents Required for eKYC Verification 

eKYC involves digitally verifying information already available in the Aadhaar database, eliminating the need for additional documentation with your application. However, during online eKYC biometric verification, you might need to provide passport-sized photographs while authenticating your biometrics. 

Who is eligible for the Process of eKYC  

To undergo eKYC, it is necessary to possess an Aadhaar Card issued by UIDAI, which includes a unique 12-digit number containing your identity details. It is important to note that eKYC cannot be completed without an Aadhaar Card. 

What is the Online eKYC Process? 

To complete your online Aadhaar eKYC process using OTP authentication, follow these steps: 

1. Go to the official website of any KRA (KYC Registration Agency). 

2. Create an account by filling in your details. 

3. Provide your Aadhaar number and registered mobile number. 

4. Enter the OTP received on your mobile device into the designated field. 

5. Upload a self-attested copy of your Aadhaar card. 

6. Agree to the declaration terms and complete the process. 

To complete your online Aadhaar eKYC process using biometrics authentication, follow these steps: 

1. Go to the official website of a recognised KRA. 

2. Sign up by entering your Aadhaar and mobile numbers. 

3. Choose the online biometric authentication option. 

4. An authorised representative will contact you to arrange a home visit. 

5. Undergo biometric verification. 

6. Present original documents, which can also be completed via video. 

7. Wait for the approval of your KYC request. 

How Can I Check My Online eKYC Status? 

• Visit the official website of any KYC Registration Agency (KRA).  

• Enter your PAN (Permanent Account Number) details in the specified fields. 

Upon submission, you will receive instant notification of your KYC compliance status. If not compliant, you can proceed with biometric or OTP authentication to complete the Aadhaar eKYC verification process online. 

Also Read: How to Open a Savings Account Online 

Aadhaar Card-Based Paperless Offline eKYC: Explained  

The Aadhaar-based paperless offline eKYC is a recent initiative introduced by UIDAI to enhance the security and convenience of sharing data. It eliminates the requirement for residents to furnish a photocopy of the Aadhaar Card. Instead, residents can download the KYC XML, which includes details like their name, address, photo, gender, and more, and submit it to agencies requesting their KYC information. It enables organisations to verify one’s identity without collecting or retaining his/her Aadhaar number. The shared file can only be accessed with the right “share phrase”, which is provided to users when the XML file is downloaded. 

Disclaimer:  The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.