Aadhaar is a 12-digit number issued by the UIDAI- Unique Identification Authority of India to the Indian residents after a certain set of the identification method decided by the Authority. Any individual residing in India may willingly enrol to get an Aadhaar number, irrespective of their gender and age. The Individual needs to provide his or her demographic and biometric information at the time of the enrolment method which is free of charge. Aadhaar card acts as a very useful document and it allows you to do many transactions smoothly.
Scope of an Aadhaar Card
The Aadhaar card is a one-time issued number and is valid for your lifetime. You need to be an Indian citizen and you can effortlessly get yourself an Aadhaar Card. Applying for the Aadhaar is free and smooth and having the card in your name can make you get several benefits from the card like it can be used as a proof of identity for opening a bank account, as an address proof, you can avail subsidies by having the card and many more. Also, its distinctiveness helps to destroy duplicates and fake identities, thereby helping the government to have a transparent and clean system of distribution of service. Aadhaar platform comes with its inherent features of individuality, authentication, important financial data, and e-KYC. Here we will talk more about e-KYC and understand what it is all about. Let us see what e-KYC is.
What is e-KYC?
We have often heard about KYC in our daily lives and we know KYC stands for “Know Your Customer” and it requires you to furnish your identity and address proof along with other details. e-KYCis a controlling strategy that has been established and functional universally to control theft of identity, frauds as well as money laundering. By way of an e-KYC, the details of the individual together with photocopies of his or her all valid government identity proofs are gathered and warehoused in a central database. Aadhaar based e-KYC is the electronic version of the KYC that is administered by the UIDAI- Unique Identification Authority of India. Aadhaar based Paperless offline e-KYC verification allows you as an Aadhaar number holder to willingly use it as and when needed for establishing your identity, in several applications electronically and without any paper, upholding confidentiality, safety, and inclusion.
We will discuss more e-KYC in detail for you to understand the concept.
What are Aadhaar Authentication & e-KYC services?
Aadhaar Authentication is a procedure by which your Aadhaar with the demographic and biometric statistics is stored into the CIDR -Central Identities Data Repository for its authentication and such storehouse authenticates the accurateness of the data or whether the data is inadequate based on the available data on it. The purpose of this authentication is to empower you as a resident to provide your identity for several service providers to supply their services and provide access to the benefits. Many service providers need people to submit identity proof that will allow them to provide several customer services, grants, and benefits. While collecting those identity proofs, the service providers face many problems in terms of authenticating the correctness of the identity documents, and here is where the aadhaar based e-KYC helps them to authenticate the data correctly. Aadhaar Authentication is intended to give an online platform of identity to authenticate your identity anytime and at any place. Online e-KYC is an immediate authentic verification, thereby speeding up the entire process of KYC. Also being online helps to reduce the cost that is connected with paper-based verification.
What is Offline e-KYC?
Aadhaar Paperless Offline e-KYC eradicates the necessity for you to provide a photocopy of your Aadhaar letter and as an alternative, you can download the KYC XML and provide it to the service providers who want to have your KYC. All the KYC details are in machine legible XML and are digitally signed by the UIDAI authority permitting the service providers to validate its genuineness and detect any altering. Service Providers can also authenticate you by way of their own OTP -One Time Password or by a face authentication technique. You can get Aadhaar paperless Offline e-KYC data by means of the below-mentioned channels:
- You can download Aadhaar paperless Offline e-KYC from the resident portal https://resident.uidai.gov.in
- For future use, get Aadhaar based paperless Offline e-KYC through:
- mAadhaar – A mobile-based application on your registered mobile number
- Aadhaar Seva Kendra or ASK by the way of biometric authentication
- Incoming SMS via your registered mobile number
Who can use e-KYC services?
Any Aadhaar number holder who wishes to establish his or her identity to any service provider using digitally signed XML file downloaded from UIDAI official website may be a user of this convenient service. The service provider must have requirements of providing this Aadhaar based Paperless Offline e-KYC at their premises and go ahead with the offline authentication. In simple words, any authorized agent/service provider or a certified institution can use e-KYC services as and when they require to authenticate any person to validate their identity.
Data covered in offline e-KYC
As mentioned before, service providers or agencies will be able to authenticate your details. Let us see what details they will be able to see while downloading or getting offline e-KYC data that are included in the XML.
- Name of the Resident
- Download the Reference Number
- Date of Birth or Year of Birth
- Mobile Number in hashed form
- Email Address in hashed form
Aadhaar Paperless Offline e-KYC data is encoded using a “Share Phrase” provided by you at the time of downloading that is essential to be shared with the service providers or agencies to read your KYC data or information.
Advantages of offline aadhaar e-KYC
There are many benefits and advantages linked with the Aadhaar basede-KYC process of authentication, and they can be summarized as below:
- Only a reference ID is being shared and your Aadhaar number is not disclosed
- KYC data may be shared directly by you without UIDAI’s intervention or knowledge
- No essential biometrics like your fingerprints or your iris scan is needed for such authentication
- You a choice of the information or the data amongst the demographics information and photo which needs to be shared
- Aadhaar e-KYC data, that is downloadable by you is digitally signed by the concerned authority of UIDAI to validate the authenticity and notice any fiddling
- Agencies can confirm the data via their own OTP or Face Authentication as mentioned above
- KYC data is encoded with the phrase given by you permitting you to control your data
- Aadhaar Based Paperless Offline e-KYC is totally voluntary and you are the sole controller of the same
- Any service provider or agency working with individuals can use it, however with your consent as an Aadhaar cardholder permitting extensive usage
Disadvantages of offline aadhaar e-KYC
The only disadvantage is the security hazards, implying there could be a compromise while sharing the data with the service providers and may lead to issues in future.
How offline e-KYC works?
The offline e-KYC procedure is a speedy and convenient means for Aadhaar cardholders to furnish their KYC details for the purpose of authentication. As an Aadhaar card holder, you can simply download an XML file version of your KYC information and provide it to the applicable requesting service providers or the agencies. The XML file, a tamper-proof document, is substantiated by the UIDAI and is signed electronically thereby with the additional security of the data being shared. The agencies can also substantiate the user by using their own OTP or his /her face authentication method.
Process of online aadhaar e-KYC
Here are the simple steps below to do an aadhaar basede-KYC online:
- Produce your Aadhar card to the bank officer who takes a note of your Aadhaar number
- The next step is that of a biometric scanner, that captures your fingerprint or your image of the retina. Fingerprint is always the first choice currently as this is convenient and easy. Another way of validation which is also available is mobile One Time Password-based authentication
- As soon as the instrument reads your biometric data, the value is transferred to the UIDAI by means of secure servers
- The input biometric data is then matched against the value that is being stored in the central database for that specific Aadhaar number
- When both the values match, it is ok to accept that your identity is not false and it’s a genuine one
- After the successful authentication of your identity, the UIDAI will announce all your credentials like your addresses, date of birth, photographs, etc to the respective bank or the agent, thereby removing the necessity to carry unnecessarily numerous documents. The UIDAI permits the agent or the organization to store a digital or a soft copy of all the necessary details in their remote server offering the agent or the organization the liberty to use the same as and when it is required
How to access aadhaar paperless e-KYC?
Any person who is having his or her Aadhaar card will be in a position to easily access their paperless e-KYC data by following the below-mentioned steps:
- Visit: https://uidai.gov.in/
- Download the Aadhaar Based Paperless Offline e-KYC form
- The next step for you will be to fill up the form carefully and submit it
- The applicable information will be obtainable for downloading the same as an XML file that will be digitally signed by the appropriate authority of UIDAI
How to share offline e-KYC data?
The downloaded offline Aadhaar basede-KYC data may be shared with the pertinent requesting service provider or agency by you as an Aadhaar holder in physical format or a soft copy or digitally. The ‘Share Phrase’ needs to be provided to the respective agency or the authority during this time as the data remains password-protected for security reasons. Also, for high-resolution copies, it is recommended to share the information or data by way of an XML or PDF file.
Important points to remember in e-KYC
- Not everyone can use e-KYC authentication services. Only UIDAI certified and verified agents /institutions can make use of the Aadhaar-based e-KYC
- The biometric scanners used by the validated agents or institutions also will have to be substantiated by UIDAI, thereby adding one more layer of safety measure
- The e-KYC is free of cost and you need not pay anything for the same
- e-KYC permits instant authentication for bank accounts opening or may be a mobile sim activation
With Aadhaar basede-KYC in place, you need to take the trouble of carrying many identity documents and experience the hassle of having physical copies of the same. You can simply use the e-KYC procedure and enjoy the benefits.
Identity authentication can simply be done by giving identity documents like a voter’s id, PAN card, or a passport, etc to the service provider. However, all these documents can still be fake which might or might not be probable to validate offline immediately. The document verifier has no technical way to validate the authenticity of the document or the data it has and has to trust the person who is producing the document. While the XML file produced by the Aadhaar number holder by way of Aadhaar Paperless Offline e-KYC is secured and digitally signed by UIDAI. Therefore, the agencies or the service provider can authenticate the demographic contents of the file and confirm the same to be authentic and genuine while performing the verification offline.
Service Providers will not share, publish or exhibit either Share Code or XML file or its matter with anybody else. Any non-compliance of these activities will invite strict actions under Sections 17 and 25 of The Aadhaar Authentication Regulation, 2016, Sections 4 and 6 of The Aadhaar -Sharing of Information Regulation, 2016 and Sections 29(2), 29 (3) and 37 of The Aadhaar Act, 2016.
No, persons who do not possess an Aadhaar, e-KYC is not possible for them.
Currently, Banks are only using the authentication method e-KYC.
No, it is not mandatory. However, looking at the advantages of this method, it is advisable to use an e-KYC method of validation.