We live in a period where phishing, identity forgery, and signature forgery is an extremely normal thing. Assume a man goes to a bank and says his name as X and borrows money. Imagine a scenario where the information he gave is wrong. Consider the possibility that he flees with that money. It will be the bank, who should endure and bear that loss.

In this way, it is significant for any of the loan specialist whether it is a bank or an NBFC to have the complete and right information of your clients particularly when you are a financial organization or regardless of whether you are a businessperson it is vital to KNOW YOUR CUSTOMER. Knowing your customer assumes the most significant role to protect your financial institution or Business from illegal transactions or fraud and decreases the risk factor. Because of these things, RBI presented KYC in the year 2002. This KYC has a few rules to know a customer in a superior and productive manner.

Understanding its significance Banks complete this KYC strategy at the time of opening a bank account. It is additionally the responsibility of the bank to continue updating the KYC of each client with time. And, E-KYC is a procedure where approved organizations query a digital ID system to confirm or check their user’s identities and in some cases, recover fundamental data about them. E-KYC system can improve the onboarding procedure by decreasing or disposing of paper-based techniques and record-keeping, which also decreases cost and time spent on verification, making it increasingly profitable to give services to low-income customers.

For e-KYC systems to be compelling, yet, they should be upheld by a powerful digital ID infrastructure with wide inclusion. The World Bank characterizes digital ID as “a group of electronically caught and stored identity characteristics that uniquely portray an individual inside a given context and is utilized for electronic transactions. It gives remote confirmation that the individual is who they appear to be.”

So in short, e-KYC facilitates completion of the KYC procedure online dispensing the need for submission and filling up physical forms or documents. The primary goal of e-KYC is to enlist the client with a minimal amount of paperwork under less time.

EKYC Process

• Register for Aadhaar

Aadhaar is a 12 digit numerical code that stores statistic and biometric information of the populace and this services is been given by the Unique Identification Authority of India which is a Central Government Agency

• OTP or Fingerprint Biometric

On the Aadhaar enlisted the mobile number for verification, an OTP will be given. To check the thumbprint of an individual a fingerprint biometric scanner can likewise use to confirm the personality of a person. If an individual might not have fingerprint scanning abilities OTP is progressively helpful though.

• Multiple Parties Signatures if Required

Regardless of their area, an individual can get numerous parties to sign a record electronically.

• Download or send the same

The file can save or downloaded for later use.

Pros of EKYC:

• Paperless

It would take out the need for any physical paperwork if the whole procedure can be moved online.

• Consent-based

For any information to be shared or accessed by some other third-party consequently securing a person’s entitlement to protection an individual needs to give their consent.

• Compliance with the Information Technology Act, 2000

Any exchange of information is securing through. The utilization of digital encryption and signature according to the Information Technology Act. 2000 so electronic KYC is lawfully proportionate to that of a paper record. So it has a similar value as a typical report.

However, any online service or software process always requires testing before it goes handy. So we are the software testing company and daily handles new software product’s launches and ready to help you too.