Aadhaar is one of the most vital documents today. However, the manual KYC verification can be a hectic method, given the numerous photocopies you need to provide along with self-attestation. 

Aadhaar e-KYC helps minimise such hassle! This voluntary method of digital identification is much easier and faster, hence saving your crucial time. 

Still new to the concept? Please go through our comprehensive guide.

Just as you need to provide your KYC documents to verify your identity, e-KYC is no different except for being a digital process. Aadhaar-based e-KYC is a paperless authentication process of an individual’s identity, carried out with his/her consent.

This involves ID verification using biometric and demographic details collected during the Aadhaar registration process, which are available in the UIDAI database. 

The UIDAI already verifies such data, saving time spent on extensive paperwork and attestations. Using Aadhaar for this purpose solves the hassle of producing multiple documents for ID proof, address proof, age proof, etc., since it is a comprehensive document that is valid for all such information.

What is e-KYC Full Form?

In e-KYC, ‘e’ stands for electronic, and KYC stands for Know Your Customer. This digital process enables an organisation to verify a customer's identity online.

Many customers can confuse Aadhaar e-KYC with Aadhaar authentication since both the processes seem similar from the customer’s end.  The actual functioning of these processes, however, is different.

• Aadhaar authentication: This is a verification procedure that involves all biometric and demographic information on your Aadhaar card to be stored in the Central Identities Data Repository (CIDR). This vault, in turn, verifies the correctness of submitted data by cross-checking it with information available within it.

• Aadhaar e-KYC: In this process, the service provider can directly access all your private information like name, address, gender, date of birth, etc., from the UIDAI database and verify it themselves to help you establish your identity.

The e-KYC via the Aadhaar card is a faster and simpler process with enhanced effectiveness. If you aren’t aware of this hassle-free procedure as of yet, here are the details.

The eligibility criteria for the Aadhaar e-KYC process is:

• The primary requirement for the e-KYC process is an Aadhaar number. This number is issued by the UIDAI ( Unique Identification Authority of India).

• An Aadhaar card is issued to the Indian residents. However, an NRI may also obtain a card if he/she has stayed in India for 182 out of 365 days after the enrolment of the Aadhaar.

• The Aadhaar number and mobile number must be active to complete the process.

E-KYC for Aadhaar is a digital process and does not require any other additional documents except the Aadhaar number. However, in certain instances, you may be asked to submit a passport-sized photograph.

You can complete the verification process for Aadhaar e-KYC online or offline, both of which are paperless means to get the work done.

If you are wondering how to verify KYC online, there are a couple of methods to do that.

1. Via Biometrics Authentication

Customers need to go through the following procedure when opting for Aadhaar e-KYC verification via biometrics.

• Step 1: Provide your Aadhaar card to your service provider. They will note your Aadhaar number or Unique Identification number (UID).
• Step 2: Next, they will use a biometric scanner to capture and read your fingerprint or retinal image.
• Step 3: This value is then communicated to the UIDAI, which matches this input value with the already existing value present against your Aadhaar in its database.
• Step 4: Your identity will be successfully established once both the values match.

Once this verification procedure is completed, the UIDAI will give the service provider access to all your details like date of birth, address, photograph, etc.

The UIDAI also lets the agent keep a soft copy of such details in their servers, thus, allowing them to access such data as and when required.

That concludes how to do KYC online!

2. Via Mobile OTP Authentication

You can also opt for the OTP-based authentication method, which can be carried out in the following manner.

• Step 1: Produce your Aadhaar card before the service provider.
• Step 2: UIDAI will send an OTP on your registered mobile number.
• Step 3: Now, enter this OTP in the device provided by your service provider. 

After this, the UIDAI will provide your details to the agent that is similar to the biometric authentication procedure.

3. Via m-Aadhaar app

To complete the Aadhaar e-KYC process online, you need to first download the m-Aadhaar app in your phone and ensure that you have sma enabled.You need to follow these steps after that.

Step 1: Open the m-Aadhaar App and log in using your credentials.

Step 2: Navigate to the ‘Services’ tab on the home screen.

Step 3: Select the ‘paperless offline e-KYC’ under the ‘Aadhaar services’ option.

Step 4: Enter Aadhaar number and security captcha and click on ‘Request OTP’ option.

Step 5: Enter the OTP and click on ‘verify’.

Step 6: Read the information in the e-KYC document and confirm if it is correct.

Step 7: Click on ‘Share e-KYC’ option to share the document via a medium of your.

If none of the online methods is feasible, service providers can use your Aadhaar for offline KYC verification via any of the following methods.

1. By Scanning QR Code:

Service providers can use a mobile scanner to scan the QR code present on the Aadhaar card to extract all demographic information and complete the offline UIDAI KYC verification. Extracting information via this method does not require agents to access the UIDAI’s database.

2. Paperless Method of Offline e-KYC :

You can also opt for the following method to get your Aadhaar e-KYC done offline.

Step 1: Go to the official portal of the UIDAI.

Step 2: Enter your UID or VID, the security code, and click on “Send OTP.”

Step 3: Enter the OTP received on your registered mobile number and download the Aadhaar XML. It contains your details like name, gender, date of birth, address, and hashed email and mobile number, among other information. It is also digitally signed by UIDAI and is protected with a 4-character Share Code.

Step 4: You can then provide this XML file to your service provider, who will then verify your identity using the machine-readable details in the file.

This process reduces the expenses of paper-based verification and is also a faster means to complete one’s official identification.

Besides being paperless and time-effective, Aadhaar e-KYC offers the following advantages.

• Information extracted from the UIDAI’s database is already verified and needs no further authentication.
• This authentication process does not involve any cost.
• It is a consent-based process, i.e., the UIDAI will share your details with the requesting party only after you provide your acknowledgement of the same via biometrics or OTP.
• You do not need to worry about your personal details being compromised since UIDAI only allows registered institutions and agents to access the Aadhaar KYC online verification facility. Additionally, it also verifies the biometric scanners used by service providers.
• Digital documents that are provided are shared via a secure channel, which cuts out the possibility of illegal document replication.

If you want to know your eligibility status to avail of this convenient facility, there is provision for that as well.

If you want to avail yourself of any financial services, you will need to comply with the KYC guidelines first. However, if you aren’t sure if you are KYC compliant or not, you can check the same in the following steps.

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

Step 2: Enter the details of your Permanent Account Number (PAN).

You will immediately get to know if you are KYC compliant. In case you are not, you can complete the procedure for the same via Aadhaar-based biometric. 

Given the numerous Aadhaar e-KYC advantages, we understand why you might be too eager to find the steps to become KYC compliant. However, that is a topic we would like to leave for some other day!

Several organisations now turn to Aadhaar E-KYC to verify their customers. Some of these are:

• Trading accounts

• LPG service providers

• Banks and mutual fund houses

• Railways

• Stock brokers

• Stock exchanges

• KYC registration agencies