Digital KYC — Electronic Verification: Complete 101 Guide
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