EKYC

Digital KYC — Identity Verification in the Digital Age What is KYC? KYC (Know Your Customer) is mandatory identity verification required by RBI, SEBI, and other regulators before opening bank accounts, investing, or using financial services. Types of KYC In-Person Verification (IPV): Physical branch visit (traditional) eKYC: Aadhaar-based electronic verification Video KYC: Live video call verification (pandemic-era) OTP-based: Aadhaar-linked mobile verification How Digital KYC Works eKYC Process Share Aadhaar Number: Enter at service provider Biometric/OTP: Authenticate via fingerprint or OTP UIDAI Verification: Aadhaar database check Address Proof: Digital fetch from UIDAI Account Opening: Instant (minutes) Video KYC Process Schedule Call: Book video appointment Show Documents: PAN + Aadhaar displayed Liveness Check: Blink, move to verify real person Background Check: Geo-location verification Instant Approval: Account opened same day Regulatory Framework RBI Guidelines (2024) Video KYC Permitted: Since April 2020 (temporary), now permanent Biometric Data: Can be stored by regulated entities Data Retention: 5-10 years after account closure Customer Consent: Explicit, auditable consent PMLA Requirements Record Keeping: Transaction records mandatory Suspicious Transactions: Must report to FIU-IND Beneficial Owner: Corporate transparency required UIDAI & Aadhaar Integration What UIDAI Provides Identity Verification: Name, photo, demographics Address: Standardized address format e-Aadhaar: Digitally signed PDF Aadhaar Services for KYC eKYC: XML with demographic + biometric hash OTP KYC: Aadhaar-linked mobile verification QR Code: Offline Aadhaar verification Data Privacy Concerns What Data is Shared Demographics: Name, address, photo, DOB Biometrics: Fingerprint, iris (not shared via eKYC) Mobile Number: If linked to Aadhaar Privacy Protections (Aadhaar Act 2016) Section 29: Data cannot be shared except for specified purposes Data Security: UIDAI mandated encryption No Profiling: Cannot create comprehensive profiles Consumer Rights Consent: Must explicitly consent to KYC Purpose Limitation: Data only for stated purpose Access: Can request KYC data shared Deletion: Request removal after account closure Common Digital KYC Services Banking Instant Account Opening: Video KYC with HDFC, ICICI, etc. Digital Banks: Niyo, Fi, Jupiter Investments Brokers: Zerodha, Groww, Upstox Mutual Funds: Direct plans via CAMS/Karvy Lending Instant Loans: Cashbean, KreditBee BNPL: Simpl, ZestMoney Insurance Term Insurance: ICICI Prudential, Aegon General Insurance: Policybazaar, Digit Verification Methods eKYC (Aadhaar-based) 1 2 3 Pros: Fast (minutes), paperless Cons: Requires Aadhaar linkage, biometric access Best For: Fast account opening Video KYC 1 2 3 Pros: No biometric needed, fully digital Cons: Takes 15-30 minutes, needs good internet Best For: Those uncomfortable with biometrics Offline KYC 1 2 3 Pros: No data sharing with service provider Cons: Limited services, requires printout Best For: Privacy-conscious users How to Complete KYC Safely Verify Entity: Ensure RBI/SEBI registered Read Consent: Understand data being shared Check Permissions: Don’t grant unnecessary access Save Acknowledgment: KYC reference number Review Credit Report: Ensure no unauthorized inquiries Reporting Issues UIDAI: For Aadhaar-related issues RBI: For banking KYC problems SEBI: For investment service issues Privacy Court: For data misuse Prime References UIDAI Official - Aadhaar services RBI KYC Guidelines UIDAI Aadhaar Authentication - API documentation MeitY Data Privacy - Digital privacy guidelines This 101 guide is part of CashlessConsumer’s fintech education initiative. Last updated: March 2026. ...