Digital KYC — Electronic Verification: Complete 101 Guide
Last updated: March 2026
What is Digital KYC?
Digital KYC (e-KYC) uses Aadhaar-based electronic verification to complete customer identity verification instantly without paperwork.
Types of KYC in India
| Type | Description | Use Case |
|---|---|---|
| e-KYC | Aadhaar-based biometric | Banking, SIM |
| Video KYC | Live video verification | Fintech, NBFC |
| OTP-based | Aadhaar OTP | Low-risk services |
| CKYC | Central KYC registry | Cross-platform |
How e-KYC Works
Process Flow
- User shares Aadhaar number
- Consent for authentication
- Biometric/OTP verification
- UIDAI validates identity
- Details fetched digitally
- Account opened instantly
Required Documents
- Aadhaar number
- Mobile number (registered with Aadhaar)
- PAN (for financial transactions)
- Biometric/OTP consent
Legal Framework
- Aadhaar Act 2016: Legal basis for authentication
- RBI Guidelines: Banking KYC requirements
- PMLA: Anti-money laundering compliance
- DPDP Act 2023: Data protection
Privacy Concerns
Risks
- Identity data exposure
- Biometric misuse
- Location tracking
- Data breaches
Safeguards
- Consent-based authentication
- Data minimization
- Secure storage mandates
- Right to deletion
Consumer Rights
- Right to know authentication purpose
- Option to deny consent
- Grievance redressal via UIDAI
- Data portability rights