Electronic KYC (know your customer) refers to the digital verification of your identification that does not need any face-to-face contacts. KYC was implemented to prevent money laundering and other fraudulent acts. It entails a series of tests to verify that the customer’s identification is confirmed before any transactions or financial services are initiated. eKYC is now widely acknowledged as an appropriate and effective approach for profile verification due to digitalisation. When applying for a Bajaj Finserv Personal Loan, it is mandatory to verify KYC. Once you complete your loan application, you can check your Bajaj finance loan application status online.
The KYC procedure is straightforward, quick, and cost-effective. Here’s everything you need to know about eKYC verification, including how it works, the various kinds of eKYC, the application procedure, eligibility requirements, necessary papers, and benefits.
What is eKYC, and how does it work?
eKYC is a digital process that undertakes paperless identity verification of a consumer and leverages the Aadhaar database. As a result, to use eKYC, you must have an Aadhaar card. The institution is required to commence the KYC verification procedure whenever you seek a financial service. You may use eKYC as a form of verification if the institution or agency is approved by the UIDAI (Unique Identification Authority of India). It would help if you authorised the institution to verify your information from the UIDAI database and fill out the application for Aadhaar-based verification. In most cases, you do not need to give any other papers since this database has already been checked, and your identification will be confirmed in a couple of minutes at most.
What are the different types of eKYC?
eEKYC may be obtained in a variety of ways. The following are some of them:
1. Aadhaar eKYC using the one-time password
By using the one-time password (OTP) issued to the mobile number associated with your Aadhaar card, you may begin the eKYC procedure online. You’ll need to choose the ‘Generate OTP’ option for this. To complete the eKYC process, enter the OTP to verify your identity.
2. Aadhaar biometric authentication through online eKYC
You may also use your biometrics to complete your Aadhaar KYC verification online. When submitting your registration application, you can request an online eKYC Aadhaar biometric authentication. A representative would then visit you at the address you provided in your application and use a scanner to compare your biometric readings to the data in the UIDAI database.
3. Aadhaar paperless eKYC offline
In the offline Aadhaar eKYC procedure, identification data is shared by XML or QR code. By downloading the Aadhaar offline XML document from the UIDAI website, you may share it with the financial institution. The report is encrypted, and it does not reveal any sensitive information that isn’t relevant to the KYC verification company. You may also share the QR code on your Aadhaar card, which can be scanned to access information about your identity.
How can I apply for electronic KYC?
Any KYC registration agency, financial institution, or bank that provides the service has a webpage where you may apply for eKYC. To complete the verification, you must fill out the form and choose one of the OTP, biometric, or offline paperless KYC options. The financial institution will check and validate your identification once they have access to the information from the UIDAI database.
What are the eKYC eligibility criteria?
You may use the Aadhaar-based eKYC procedure if you have an Aadhaar card connected to your name and a mobile number. Both Indian citizens and non-resident Indians are eligible for eKYC as long as they have the same documents.
What are the documents needed for eKYC Online?
You do not need to submit any extra papers with your application since eKYC refers to digitally verifying the available data in the Aadhaar database. However, in other situations, such as online eKYC biometric verification, you may need to provide passport-sized pictures as part of the authentication process.
What are the benefits of electronic know-your-customer (eKYC)?
eKYC, or electronic identity verification, offers various benefits, including:
- Because eKYC verification can only be provided by UIDAI-approved organizations, it protects your personal information from falling into the wrong hands.
- UIDAI also regulates and manages scanners used for Aadhaar-based biometric verification, guaranteeing extra security.
- Because of its possibility for quick verification, eKYC helps obtain financial services such as establishing a bank account, activating a third-party wallet, etc.
- eKYC is incredibly time-saving and convenient.
- eKYC is a 100% free service.
KYC is a legal requirement for even the most basic financial services, such as establishing a bank account or applying for a credit card. Fortunately, with eKYC services, you may avoid submitting extra KYC papers and finish the procedure in minutes. KYC is essential when you need to acquire a Bajaj Finserv Personal Loan and can also help check the Bajaj Finance loan application status online.