E-KYC : The Digital Way of Establishing Customer Identity    
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August 18, 2022

E-KYC : The Digital Way of Establishing Customer Identity

  • March 15, 2022
  • 3 min read
E-KYC : The Digital Way of Establishing Customer Identity

E-KYC helps deliver enhanced customer experience while mitigating risks. Being an entirely paperless process, the results are instant, accurate and reliable. With Aadhaar-based e-KYC, businesses can effectively identify employees, agents, client, and vendors and check their compliance with Anti-Money Laundering (AML) laws. The validity of e-KYC is recognised by the Ministry of Finance for all financial services under the PML (Prevention of Money Laundering) regulations.

E-KYC helps you open a Bank account in a faster, easier and more convenient way. Aadhaar number enables you to use your biometric information to authenticate while doing business with a financial services provider. Transactions take place without the need for filling physical forms or extensive paperwork. Using KYC also helps get new mobile connections, or when setting up a trading account.

E-KYC is a digital way of establishing customer identity based on the individual’s Aadhaar number. E-KYC cuts through the paperwork and helps deliver an enhanced customer experience while also mitigating risks across a number of sectors. This process of electronic know your customer (e-KYC) replaced physical submission of documents by customers to verify their identification details. According to a recent estimate, 77% of frauds in India relate to identity thefts. Close to 85% of fraud cases were related to identity thefts in the banking, credit cards, mortgage loans sectors in 2017. In the U.S., 15 million consumers were targeted by identity thieves to the extent of $16 billion in 2016 alone. KYC is the crucial link that connects businesses to a safe and risk-free digital economy. Fake kyc solves the problem of risk-free digital economy. The solution powered by blockchain gives a robust and end-to-end KYC verification processfor businesses and financial institutions in emerging markets such as India and Africa.

KYC or Know Your Customer / Know Your Client is the standard for KYC in the Financial services sector. The IB has developed a number of digital ways to complete the process, and our focus at NTCS is to educate clients on this new way of converting customers in a smooth and efficient manner.India is going digital, entering a new era of information amalgamation and verification. Documents have been digitised, payments have been digitised, so it only makes sense that Know Your Customer (KYC) processes within the Financial services sector are heading down the same path. Adoption of these Digital aadhaar offline kyc solutions will ensure faster onboarding processes for customers, more efficiency for businesses, and lower costs for everyone.

This is a comprehensive set of guidelines that help financial institutions collect, verify and record their customers’ information. The objective of KYC is to ensure that financial institutions know who they are doing business with and thus help prevent identity theft or fraud. The KYC process demands extensive documentation from the customer that includes copies of valid proof of identity (POI) documents such as Aadhar card and proof of address (POA) documents such as voter id card. Apart from this, self-attested PAN card too is a must for certain types of transactions.