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What is eKYC, its application and advantage?

eKYC or Electronic Know Your Customer can be basically understood as the electronic
mode of filing documents that are concerned to a customer’s identity and enables a unit to get
the customer. The EKYC services to UIDAI partner organisations get the eKYC services
through UIDAI.

As part of the services, a customer has to share the requisite demographic and personal detail
through Aadhaar in a protected and apparent fashion. A customer has to provide details,
starting from identity details, information of communication, address details, Date Of Birth,
gender, etc. All these can be availed on a person’s Aadhaar card. A customer can make use of
biometric along with OTP Aadhar verification to provide his or her consent.

Use eKYC

eKYC is essential for customers as well as the clients of banks, fiscal institutions and Service
Providers or as fixed by the RBI in the form of circulars in regular intervals. A couple of
crucial circulars were issued in 2003 and 2004 for the banks and financial institutions to
employ an eKYC policy for the entire fresh as well as present customers. eKYC is thoroughly
applicable for the following domains, along with bank and other financial institution.

 Post Offices
 Aadhaar
 Mobile Service Providers and Telecom Service Providers
 Gas, water and electricity connectivity

Applications that handle the financial transactions that are essential for a customer wishes to
handle above INR 20,000 in one month on the app PAYTM.

Advantages

There are many advantages of eKYC. It has made the financial transactions much safer,
smoother, and quicker as well. It has thoroughly replaced the demands of managing paper-
based documents.

It means that a person that demands a service has to file for eKYC of own according to the
set consent. Naturally, this helps in keeping the person’s right to privacy in safe hands which
a basic right given by the constitution.
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Location: India

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