Paperless financial inclusion has become a daily reality as a result of regulatory improvements in 2020. KYC compliance is required whether you are applying for a house loan or investing in mutual funds. The integration of UIDAI technologies, on the other hand, has made this procedure less time-consuming and less stressful. Consumers may complete the electronic authentication procedure without difficulty while obtaining a new cell connection, creating a bank account, and so on. Let’s explore how Aadhaar KYC is streamlining digital identity verification and user onboarding. 

What is Aadhaar KYC

Aadhaar KYC entails the verification of an Aadhar Card as Identification Proof, which is a validated and legal document that grants access to services and digital platforms.

eKYC simplifies the procedure by allowing you to submit KYC data online, and the service provider validates them against Aadhaar details via UIDAI. This shortens and simplifies the entire procedure. Because of the existence of certified data, the digitization of these procedures has made life easier, faster, and more authentic.

Recent Changes

UIDAI has stated that users with Aadhaar cards issued more than ten years ago can update their demographic information on the myAadhaar portal for FREE from March 15th to June 30th, 2023.

Benefits of Aadhaar KYC Online 

Aside from providing efficiency and ease, the Aadhaar card KYC online provides the following advantages:

• Consumers are not charged for this authentication procedure.
• Because the information was obtained from UIDAI’s official webpage and has previously been confirmed, it can be relied on totally.
• This procedure adheres to government regulations, and the records are transferred over a secure route to ensure transparency.
• Because the biometric scanners used by various organisations or enterprises are validated by UIDAI, consumers’ privacy is not jeopardized.
• Even though it may be used by any service provider, your permission is essential.

What Is the Purpose of e-KYC Aadhaar?

Anything from applying for a credit card to getting a new phone number requires the production of a variety of papers for verification. Understandably, the procedure becomes exhausting, particularly if you have several needs to satisfy.

Yet, the adoption of e-KYC has made things easier for both service providers and users because it eliminates the need for manual intervention and saves time.

Let’s look at a real-world scenario to further explain the concept. Assume you want to get insurance and your insurance company has to verify some of your personal details. The insurer may quickly access the relevant personal information because the e-KYC is connected to your Aadhaar card.

What is the impact of Aadhaar e KYC Online?

The paperless e-KYC is essentially a safe and shareable document that anyone with an Aadhaar number may use to identify themselves offline. It allows service providers or Offline Verification Seeking Organizations to access client information such as name, address, date of birth, and so on.

Because the e-KYC procedure is electronic and paperless, preserving all documentation has become much easier. It should be noted that UIDAI does not provide client information without their authorization; hence, their privacy is always secured. The Ministry of Finance’s revenue department approved the usage of e-KYC in 2019, making the identity verification procedure more affordable.

How does Aadhaar Offline KYC work?

Offline Aadhaar KYC is the process of adopting an alternate workflow to digital or eKYC by using OTP and XML-based aadhaar data retrieval operation. This technique assists users who do not have an internet connection by authenticating the user’s mobile device using a government-approved OTP message.

Aadhaar Paperless e KYC is then enabled for usage in creating bank accounts and accessing services and transactions restricted to certain key areas of consideration.

How to verify KYC online

Using Biometric KYC Verification or Face Match

• Step 1: To begin, provide your Aadhaar card to the relevant service provider, who will record your Aadhaar number.
• Step 2: They’ll next scan your iris and fingerprints.
• Step 3: The value is then sent to the UIDAI to match the current value for your Aadhaar number in the central database.
• Step 4: Your identity will be successfully validated after both values match.

After completing this procedure, service providers will have access to your personal information such as name, address, and so on. It is worth noting that UIDAI also permits the agent to preserve a soft copy of this information on their servers for future reference.

How is Aadhaar OTP KYC conducted?

• Step 1: Provide the service provider with your Aadhar card details.
• Step 2: A one-time password will be generated and delivered to the cellphone number you provided.
• Step 3: Enter the OTP to properly finish the transaction.

Following that, UIDAI will provide the appropriate information to the agent or organisation in a similar manner.

A huge number of insurance firms, mutual fund houses, stockbrokers, and other financial institutions employ e-KYC to verify client information.

Why IDcentral’s Aadhaar KYC Verification API is the Ultimate Pioneer in Digital KYC

With the use of AI-enabled workflow allocation, IDcentral’s Aadhaar KYC Verification API, Aadhaar Plus, provides a fail-proof and fool-proof identity verification.

By utilising cutting-edge technologies like face match, Aadhaar Plus enables companies to validate their clients’ identities in real-time, speeding the onboarding process and enhancing user experience. This assures high accuracy and compliance with UIDAI rules.

IDcentral’s Aadhaar Plus API offers organisations a more dependable, adaptable, and scalable alternative to competing digital KYC services. The Aadhaar KYC Verification API from IDcentral, with its cutting-edge technology, dedication to efficiency, and devotion to security, is the best option for companies wishing to modernise their digital KYC process with multiple OTP aadhaar verification flows with net-zero downtime. 

Author Details: 

Sumanth is a Marketing Associate at IDcentral (A Subex Company). With hands-on experience with all of IDcentral’s KYC and Identity Verification Technology, he loves to create indispensable digital content about the trends in User Onboarding across multiple industries.