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Aadhar and e-KYC
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As Aadhaar is a proof of identity and contains the verified biometric and demographic information, so UIDAI has facilitated the information transfer for the services, applied by Aadhaar holders which requires authentication for opening a new bank account or buying a new SIM card. To facilitate the information transfer digitally, UIDAI has designed ‘e-KYC’ or electronic know your customer service.

e-KYC has given the provision to Aadhaar holders for authorizing UIDAI to release the demographic information (such as address and identity info) to the service providers, which can be done through OTP (One time password) or via biometrics.

The Process of e-KYC:

After the UIDAI gets the approval from the Aadhaar holder through OTP or biometrics, it will send a digital version of the information to the service provider which saves the paperwork and the facilitator gets assured of the verified information received through UIDAI.

e-KYC Benefits:

  1. No headache of documentation maintenance as the whole process is paperless.
  2. Instant authentication through e-KYC involves no waiting period.
  3. Information sharing on consent with Aadhaar holder.
  4. It eliminates the chances of any kind of fraud in the authenticity of documents.
  5. Presence of non-repudiation assures safer transactions between the parties.