{"id":1610,"date":"2016-09-30T16:36:43","date_gmt":"2016-09-30T16:36:43","guid":{"rendered":"https:\/\/esigndesk.com\/?p=1610"},"modified":"2025-09-17T02:54:35","modified_gmt":"2025-09-17T08:24:35","slug":"aadhaar-based-ekyc","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/aadhaar-based-ekyc","title":{"rendered":"What Is Aadhaar Based eKYC?"},"content":{"rendered":"

Introduction – eKYC Online\u00a0<\/span><\/strong><\/span><\/h2>\n

KYC, which stands for ‘Know Your Customer<\/a>\u2019, must be a familiar term for any Indian who tried to get any utility connections like a bank account, sim & LPG etc.<\/p>\n

eKYC is a regulatory policy that has been developed and applied worldwide to curb identity theft, fraud and money laundering.<\/p>\n

Through a KYC form, details of the customer along with photocopies of valid government identity proofs are collected and stored in a database.<\/span><\/p>\n

Aadhar Based\u00a0eKYC\u00a0<\/strong><\/span><\/h2>\n

Aadhaar eKYC is the electronic version of the KYC<\/a> which is administered by the U<\/a>nique Identification Authority Of India (UIDAI)<\/a>.<\/p>\n

Like the normal KYC, the idea of eKYC<\/a> too is to verify the identity of an individual except that it is done online.<\/p>\n

eKYC involves the digital KYC authentication of individuals via demographic & biometric information stored in the UIDAI database, which is retrieved after the customer verifies their identity.<\/p>\n

This customer identification information is collected by UIDAI during the registration process for the Aadhaar initiative.<\/p>\n

eKYC is simple to perform & completely digital. The different types of eKYC differ based on the methods used by the customer to verify his or her identity before their KYC details are retrieved from the Aadhaar database.<\/p>\n

Online\u00a0eKYC<\/a> can be conducted either via OTP or biometric authentication. In these cases, an OTP is sent to the customer\u2019s Aadhaar-registered mobile number to authenticate Aadhaar, or a scanner is used to read the customer\u2019s fingerprints and retina & these readings are authenticated with the biometric information recorded for that individual in the UIDAI<\/a> database. Online eKYC can only be used by financial institutions (FIs) that are regulated. Private entities can only use eKYC after paying a license fee. They must also pay transaction fee for every KYC verification<\/a><\/strong><\/span> performed.<\/p>\n

Offline eKYC is performed either via XML or QR code. In the case of Aadhaar XML, the customer downloads an XML file with his or her demographic information. This file is readable by KYC verification service providers. Offline eKYC can also be conducted by scanning the QR code on the customer\u2019s Aadhaar card. These methods of eKYC can be used by all businesses including private entities.<\/p>\n

Alternatively, DigiLocker KYC is an option for banks and insurers to offer secure & convenient KYC verification. Customers with a DigiLocker account upload Aadhaar & other KYC documents to DigiLocker, and permit registered entities (REs) to view and verify these documents during onboarding. DigiLocker KYC can be implemented using APIs, and enable swift & friction-free Aadhaar KYC.<\/p>\n

eKYC<\/strong><\/a>, therefore, is fast & simple to perform. In most cases, eKYC<\/a><\/span> can be completed simply by entering an OTP, following which the customer\u2019s KYC information is retrieved & verified.<\/p>\n

How Does eKYC<\/a> Work?<\/strong><\/span><\/h2>\n

\"eKYC\"<\/p>\n

Aadhaar eKYC aims to achieve paperless identity verification through the Internet. It makes use of the Aadhaar platform to establish the\u00a0authenticity of a person\u2019s identity.<\/p>\n

As of now, only Aadhar card<\/a> users can make use of this feature. So, if you don\u2019t have one already, now would be the right time to apply for an Aadhar.<\/p>\n

Typically, eKYC<\/a> is used by banks or agents providing utility connections or similar services to customers.<\/p>\n

Any organization or agent who wishes to confirm the identity of a potential customer can make use of the\u00a0 aadhaar eKYC.<\/p>\n

The customer can simply use his\/her Aadhar card and no other document. This saves the hassle of having to carry a bunch of docs and eliminates the need for in-person verification.<\/p>\n

The working of the eKYC<\/a> is fairly simple. Any authorized agent or institution can make use of the eKYC process.<\/p>\n

When a customer approaches an agent\/institution with a service request, identity verification of the customer is the first step.<\/p>\n

To make things much clear, let\u2019s consider the example of a man who wishes to open a new bank account with a nationalized bank.<\/p>\n

Now, the conventional procedure would require him to carry necessary documents to prove his identity and address, and also a minimum amount of cash required to open an account.<\/p>\n

Step-by-step process to do Aad<\/strong>har <\/strong>eKYC online<\/strong>:<\/span><\/span><\/h3>\n
    \n
  1. The customer produces his Aadhar card before the bank official. The official takes note of the Aadhaar number.<\/li>\n
  2. A biometric scanner captures the potential customer\u2019s fingerprint or retinal image, though fingerprint is the popular choice. Mobile OTP based authentication methods are also made available now.<\/li>\n
  3. Once the device reads the biometric, the value is communicated to UIDAI via secure servers.<\/li>\n
  4. The input biometric value is matched with the value stored in the database for that particular Aadhaar number<\/a><\/span>.<\/li>\n
  5. If the values match, it would be safe to assume that the potential customer\u2019s identity is not spurious.<\/li>\n
  6. Following successful verification of the customer\u2019s identity, the UIDAI will release all his credentials like photographs, addresses, date of birth, etc to the bank or agent, thus eliminating the need to carry around multiple documents. The UIDAI lets the agent\/organization store a soft copy of all the details in their remote server lending the agent\/organization the freedom to access it as and when the need arises.<\/li>\n<\/ol>\n

    How To Conduct DigiLocker KYC for Aadhaar<\/b><\/span><\/h3>\n

    DigiLocker is a one-stop document storage & management system run by the\u00a0Government of India.\u00a0 Users upload their KYC documents (Aadhaar, PAN,\u00a0Passport,\u00a0 DL, Voter ID) to DigiLocker just once, and then validate an OTP to\u00a0provide banks and insurers to directly verify these documents via DigiLocker.<\/p>\n

      \n
    1. User creates a DigiLocker account and uploads KYC documents. REs integrate\u00a0With the DigiLocker KYC API<\/li>\n
    2. During KYC, the user provides their DigiLocker mobile number for verification. The user receives an OTP on the same number to authenticate their identity.<\/li>\n
    3. Upon OTP verification, the RE receives KYC details such as Name, DOB, Gender, and Address. The RE may also verify the user\u2019s Aadhaar using DigiLocker.<\/li>\n
    4. Onboarding resumes after the customer\u2019s KYC is verified using DigiLocker.<\/li>\n<\/ol>\n

      Wide-data coverage in<\/span> Aadhaar offline eKYC<\/a><\/span><\/b><\/span><\/h3>\n

      One of the major benefits of using Aadhar offline eKYC or OKYC<\/a>\u00a0<\/span> is that it supports most documents for verification. When the offline eKYC data is obtained, the following data are covered in the XML file –\u00a0<\/span><\/p>\n