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What is eKYC, Meaning, Documentation, Process, Eligibility

Know Your Customer, or KYC, is the initial step in establishing a connection between a financial institution and a customer for the purpose of preventing fraudulent actions such as money laundering.

This is a series of procedures to verify customer identification before initiating a transaction or using financial services. e-KYC has been established and recognized as a suitable means of KYC verification, as digitization has replaced otherwise lengthy processes.

EKYC, which stands for Electronic KYC, refers to the digital verification of an identity that does not require face-to-face contact. The procedure is simple, fast and inexpensive. Let’s see all there is to know.

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What are the different types of eKYC?

There are several ways to get eKYC. These are the following:

Aadhaar eKYC online using OTP

You can start your eKYC process online by entering the One Time Password (OTP) assigned to the mobile number associated with your Aadhaar card. To do this, select “Generate OTP” from the drop-down menu. Enter the OTP to validate your identity and complete the eKYC process.

EKYC aadhaar biometric authentication online

You can also perform your Aadhaar KYC verification electronically using your biometric data. You must request eKYC Aadhaar biometric authentication online when submitting your registration for this.

Aadhaar paperless eKYC offline

Offline Aadhaar eKYC involves the exchange of identification data via XML or QR code. Downloading the Aadhaar offline XML document from the UIDAI website allows you to share it with the financial institution.

The report is encrypted and does not reveal any sensitive information irrelevant to the KYC verification agency. You can also share the QR code on your Aadhaar card, which can be scanned for information about your identity.

Government rules and Aadhar eKYC

In September 2018, the Supreme Court issued a landmark ruling in response to privacy concerns of Indian residents, in particular the abuse of Aadhar data by commercial companies. It prohibited private entities from using Aadhar eKYC for verification purposes.

The following month, the UIDAI authorized Aadhaar eKYC for authentication purposes only to private entities such as banks for the transmission of direct benefits.

However, the Aadhaar and other laws (amendment) of 2019 paved the way for private companies to perform KYC verification online.

According to the legislation, individuals can freely use their Aadhaar numbers to authenticate their identity, either through Aadhaar-based online KYC verification or through eKYC offline. According to the new guidelines, UIDAI ensures that private companies comply with established requirements for safety, security and confidentiality.

In addition, UIDAI would only license KYC online verification if it was essential and practical. As a result, the new stringent requirements only allow private companies certified by the UIDAI to use KYC verification online. This avoids the exploitation of your Aadhaar data.

Here are the steps of the e-KYC process:

  • Fill out the form on karvyonline.com.
  • Scanned photos of documents should be sent.
  • Complete the IPV (In-Person Verification) procedure by video call.
  • Digitally sign the contract.
  • Account Registration

Note: In order to establish an account with e-KYC, your mobile phone number must be registered with Aadhar Records. Aadhaar provides a cost-effective, secure and adaptable method of authenticating user identification.

What documents do I need for EKYC?

EKYC online registration requires the following documents:

  • A recent passport photo
  • Personalized check

In India, who needs to be eKYC compliant?

  • Individuals, residents and non-residents
  • Joint account holders
  • Guardian of minors with power of attorney (PoA)
  • Beneficiaries of Claims (in the event of the death of the initial investor)

How do I go about completing the KYC online?

When you create an account on any KRA eKYC site, you will be asked to provide your personal information. Then you need to provide your Aadhaar card number along with your registered phone number. An OTP will be sent to you immediately.

After verification, you must provide a copy of your self-certified Aadhaar card. After completing KYC online, you can check your status on the KRA webpage by entering your PAN number.

After learning how to do KYC online, keep in mind that you can also be KYC compliant through an offline approach. You just need to get the KYC form online from one of the KRAs and submit it to the appropriate authorities or person along with the required documents.

How do I update my KYC information online?

If you need to update your digital KYC records, such as your name, address, or phone number, you can go to any eKYC portal of your choice, such as any KRA. Now you need to click on the “Update KYC” option.

Then, in addition to providing a scanned copy of the revised documents, you need to fill in the new data to verify the changes. You will then be validated using an OTP sent to your registered mobile phone number.

You can now click submit after verifying your information. Information will be changed after submission, usually within a week.

As a result, eKYC is a paperless method of meeting essential KYC standards before starting your investment journey or startups. If you want to trade on the stock exchange, you can quickly fulfill the KYC obligations using Aadhaar based eKYC and register a Demat account as well as a trading account.

If you want to invest in mutual funds, keep in mind that according to SEBI regulations, investments in OTP based eKYC mutual funds are limited to Rs 50,000 per year.

If you want to invest more, you can use in-person verification (IPV) or biometric verification processes.

It can also help you to acquire business loans for your startup idea. Remember to always work with a trustworthy and reliable financial partner to get the most out of your assets.

With the largest Demat account and a variety of investment programs, Ziploan can help you reach your financial goals.

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Frequently Asked Questions

What is eKYC?

eKYC is also referred to as Aadhaar-based eKYC because your identity is verified electronically through Aadhar-based justification. Thus, Aadhaar-based eKYC instantly provides your proof of identity and address to the service provider, eliminating the need for tedious in-person verification.

How to apply for eKYC online?

Here is how you can apply eKYC online:
1) Fill in the details on karvyonline.com.
2) Submit scanned images of documents.
3) Complete the IPV (In Person Verification) process via video call.
4) Digitally sign the document.
5) Activation of the account.

Can you do eKYC online?

eKYC simplifies the KYC process, making it easy for anyone to start making transactions. No documentation, no paperwork and no fuss! All you need is your PAN and Aadhaar number to register online. Simply enter these details, verify the information, and authenticate using a one-time password (OTP).

What is aadhar eKYC?

The Aadhaar-based e-KYC (Electronic-Know Your Customer) offered by the Unique Identification Authority of India (UIDAI) can be used voluntarily by Aadhaar cardholders as a means of authenticating and establishing their identity if they wish / consent.

What are eKYC and cKYC?

It is carried out using the Aadhaar number of an investor. CKYC compliance will allow an investor to deal / deal with all Indian government regulated / regulated entities / various regulators (RBI, SEBI, IRDA and PFRDA) without having to complete multiple KYC formalities.

What documents are required for the KYC?

Here are the documents required for KYC:
1) Passport
2) Voter’s identity card
3) Driver’s license
4) Letter / Card Aadhaar
5) NREGA card
6) PAN card

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