Aadhaar e-KYC (Know Your Customer) is a paperless, electronic method of identity verification that leverages Aadhaar credentials. It allows individuals to authorise service providers to access their demographic and biometric details stored in the Aadhaar database for verification purposes. Aadhaar e-KYC eliminates the need for physical documents and manual verification processes, streamlining authentication for various services such as opening bank accounts, obtaining SIM cards, and accessing government schemes.
The process involves providing consent for the service provider to access the individual's Aadhaar data, which is authenticated in real-time by the Unique Identification Authority of India (UIDAI). Aadhaar e-KYC enhances efficiency, security, and convenience in identity verification processes across multiple sectors.
Benefits of Aadhaar e-KYC
Let us explore the benefits of Aadhaar e-KYC (Electronic Know Your Customer):
- Digital verification: e-KYC allows for instant and paperless verification of an individual’s identity. It eliminates the need for physical documents and reduces paperwork.
- Efficiency: The process is quick and efficient. Organisations can verify customer details in real-time, streamlining various services such as opening bank accounts, getting a new SIM card, or availing government schemes.
- Cost-effective: e-KYC significantly reduces operational costs for businesses. It eliminates manual data entry, photocopying, and storage of physical documents.
- Accuracy: Since the data is directly fetched from the Aadhaar database, chances of errors due to manual data entry are minimised.
- Privacy and security: e-KYC ensures data privacy by allowing only authorised entities to access specific information. Biometric authentication adds an extra layer of security.
- Financial inclusion: e-KYC enables easier access to financial services for individuals who may not have traditional identity documents. It promotes financial inclusion by simplifying processes for opening bank accounts, obtaining loans, and insurance.
- Eco-friendly: Going paperless reduces the environmental impact. It saves trees and reduces carbon footprint.
- Consent-based: Individuals have control over their data. They can provide consent for sharing specific information with authorised agencies.
- Mobile verification: e-KYC can be done using a mobile device, making it convenient for both users and service providers.
- Government services: e-KYC facilitates access to government services and subsidies. It ensures efficient delivery of benefits to eligible citizens.
Remember that while e-KYC offers numerous advantages, it is essential to stay informed about privacy rights and ensure that your data is handled securely.
Difference between Aadhaar e-KYC and Aadhaar authentication
Let us see the difference between Aadhaar Authentication and Aadhaar e-KYC:
1. Aadhaar Authentication
- Purpose: Aadhaar Authentication is primarily intended to verify an individual’s identity instantly.
- Process: During Aadhaar Authentication, the service provider sends the individual’s Aadhaar number and other relevant attributes (such as biometric information) to the Central Identities Data Repository (CIDR).
- Response: The CIDR responds with a simple ‘yes’ or ‘no’ regarding the correctness of the information. No personal details are shared as part of this response.
- Use case: It is commonly used for quick identity verification without revealing specific personal information.
2. Aadhaar e-KYC (Electronic Know Your Customer)
- Purpose: Aadhaar e-KYC serves as a means of authenticating an individual’s identity, especially for banking institutions.
- Data access: Unlike Aadhaar Authentication, e-KYC allows the service provider to access specific personal data from the UIDAI database.
- Details shared: In Aadhaar e-KYC, the individual’s personal details (such as name, address, and photo) are shared in an encrypted format with the e-KYC User Agency.
- Advantages
- Simplified process: e-KYC streamlines the verification process by eliminating the need to contact different government institutions for various identity proofs.
- Cost reduction: Being online reduces the cost associated with paper-based verification.
- Speed: It provides immediate authentication, speeding up the entire KYC process.
In summary, while both Aadhaar Authentication and Aadhaar e-KYC serve identity verification purposes, the key distinction lies in the level of detail shared: Aadhaar Authentication provides a binary response, whereas e-KYC shares encrypted personal information with authorised agencies.
Aadhaar e-KYC offline
Aadhaar's Paperless Offline e-KYC revolutionises identity verification by eliminating the need for residents to provide a photocopy of their Aadhaar letter. Instead, individuals can download the KYC XML, providing a convenient and secure method for agencies requiring KYC verification.
The KYC details, stored in a machine-readable XML format, are digitally signed by UIDAI, ensuring authenticity and safeguarding against tampering. Agencies can verify this information and authenticate users through their OTP/Face authentication mechanisms.
The data covered in Aadhaar Offline e-KYC includes essential details such as resident name, address, photo, gender, date of birth, and mobile number (in hashed form), along with email (also in hashed form).
How to get offline Aadhaar e-KYC XML?
Discover the simple steps to generate your Aadhaar offline e-KYC:
- Visit the URL: https://myaadhaar.uidai.gov.in/offline-ekyc
- Input your Aadhaar number or VID along with the provided security code. Then, tap on 'Send OTP'
- You will receive an OTP on your registered mobile number or via the m-Aadhaar mobile application by UIDAI
- Enter this OTP. Generate a share code, which acts as the password for your ZIP file, and click on 'Download'
- The digitally signed XML file, securely packaged in a ZIP, will be instantly downloaded to your device
Alternatively, access the offline Aadhaar XML directly from the mAadhaar app for added convenience.
Organisations that uses e-KYC
In addition to financial institutions, various entities such as mutual fund houses, trading accounts, insurance companies, LPG service providers, stock brokers, railway authorities, stock exchanges, and KYC registration agencies leverage e-KYC.
e-KYC offers a swift, straightforward, and hassle-free process accessible to every citizen holding an Aadhaar Card in the country.
Documents needed for Aadhaar KYC
Aadhaar KYC uses your Aadhaar Card to perform this verification electronically. There are two ways to do Aadhaar KYC:
1. Aadhaar paper KYC: This method requires you to submit physical copies of your documents as proof of identity and address.
Documents required for Aadhaar paper KYC:
- Proof of Identity
- Aadhaar Card (mandatory)
- Passport
- Voter Identification card
- Driving license
- PAN card
- Photo identity card issued by a government department or public sector undertaking
- Voter Identification Card India
- Proof of Address
- Passport
- Voter Identification card
- Driving license
- Bank statement or passbook (not older than three months)
- Electricity bill (not older than three months)
- Water bill (not older than three months)
- Telephone bill (not older than three months)
- Ration card with address
- Property tax receipt
- Lease agreement
- Any other document notified by the UIDAI as proof of address
2. Aadhaar paperless offline e-KYC: This method does not require any physical documents. Instead, you can download your KYC XML file from the UIDAI website and share it with the agency that needs to verify your KYC.
