In 2004, the Reserve Bank of India brought guidelines for financial institutions to mandate Verification of the identity and address of their customers. It became crucial for all financial institutions to KYC process all their customers before performing any financial transactions. KYC is a traditional know-your-customer process that has been obsolete with time. In the current scenario, the hottest topics are EKYC software and KYC solutions. 

Let's understand the KYC Ekyc process through an instance. If you want to show your luck in the trading industry, the customer verification process is mandatory for opening your Demat account. In this process, the customer needs to submit a PAN card number. After this step, they need to enter their 12-digit Aadhaar card number, and the customers get an instant OTP on their registered mobile. All the information will be fetched from DigiLocker for further processing. 

 Why KYC eKYC?

 The KYC EKYC concept came into existence due to its extensive features, and it prevents fraud activities. This KYC registration process happens online, requiring a high-speed Internet connection. The customer submits all the documents using Aadhaar and DigiLocker, which hold all essential documents. One of the main advantages of using this process is that the customer does not need to visit any physical location. 

 Eligibility Criteria to Avail eKYC Solutions

 Aadhaar-based eKYC software or tools proceed straightforwardly with the entire verification process for brokers or banks. At the same time, they let their customers open a Demat account or other financial accounts. The customer must need an Aadhaar card that reduces the burden of many document submissions. 

 Aadhaar-based eKYC solutions

 The OTP-based Aadhaar-KYC process begins when an individual provides their Aadhaar number and mobile number to the service provider. The service provider then requests the UIDAI (Unique Identification Authority of India) for the individual's KYC details. The UIDAI then sends an OTP to the individual's mobile number registered with Aadhaar.

 The individual must then provide the OTP to the service provider, verified by the UIDAI. Once the OTP is verified, the UIDAI sends the individual's KYC details to the service provider. The service provider can then verify the individual's identity and complete the KYC process.

 The OTP-based Aadhaar-KYC process is designed to be secure and reliable. The OTP is sent to the individual's registered mobile number linked to their Aadhaar number. This ensures that only the owner of the Aadhaar number can access the OTP and complete the KYC process. Additionally, the OTP is valid for a limited time, usually a few minutes, reducing the risk of unauthorized access to the individual's KYC details.

 Salient features of EKYC

 Electronic Know Your Customer (KYC) is a digital process that verifies the identity of customers remotely, without the need for physical documents or in-person verification. eKYC has become a popular method for customer identification and verification in the financial services industry, especially for opening bank accounts, applying for loans, and investing in financial products.

 Digital Process

 One of the significant features of Ekyc software solution is that it is a completely digital process. Customers can complete the verification process online or through mobile apps without physical documents. eKYC uses digital identity verification methods like biometric authentication, video KYC, and Aadhaar authentication.

 Convenient

 The eKYC process is convenient for both customers and service providers. Customers do not need to visit a branch office or submit physical documents. eKYC can be completed anywhere, anytime, using a smartphone or computer. For service providers, eKYC reduces the time and resources required for customer verification, making the process faster and more efficient.

 Secure

 eKYC is a secure method for customer identification and verification. It uses advanced encryption technologies to protect customer data and prevent unauthorized access. eKYC also has built-in fraud prevention measures, such as liveness detection and face recognition, to ensure the authenticity of the customer's identity.

 Time-Saving

 eKYC saves a significant amount of time compared to traditional KYC processes. The verification process can be completed within a few minutes, compared to several days for physical KYC. This makes it easier and faster for customers to open bank accounts, apply for loans, and invest in financial products.

 Cost-Effective

 eKYC is a cost-effective method for customer identification and verification. It eliminates the need for physical documents, reducing the cost of printing and storage. eKYC also reduces the cost of customer acquisition by making the process faster and more efficient.

 Regulatory Compliance

 eKYC is compliant with regulatory requirements for customer identification and verification. It meets the standards set by the Reserve Bank of India and other regulatory bodies. eKYC also ensures that customer data is stored securely and is accessible only to authorized personnel.

 Bottom Line

 Hopefully, all the discussed points will give a clear picture of EKYC solutions in simple words. Whether you’re a financial institution or brokerage company, EKYC verification is a must-have and the first step for your customer.