UIDAI has decided to make Know Your Customer (KYC) process paperless, secure and beneficial through Aadhar card. UIDAI is hopeful that making KYC process electronic will facilitate customers and they can easily register their name and address details. Finance Ministry has already declared E-KYC a valid document for financial services. By using E-KYC service, customers will authorize the authority to provide KYC concerned information to their service provider. Authority will then provide name, address, date of birth, gender, photograph, mobile number, email etc. of the concerned person to the service provider.
Main Features of Aadhaar KYC Service
1. Paperless – This service will be completely electronic where there will be no need to manage paper documents.
2. Based on Agreement – UIDAI will provide KYC related information to any third-party only after consent of the concerned person. In this way the privacy of that person will remain safe.
3. End to Forgery in Documents – There will be no need of photocopies of various documents in this process. The authority will provide only E-KYC data to service provider due to which there will be no forgery in documents.
4. Secure under IT Act – Data transfer process will be according to IT Act 2000 for which digital signature will be needed.
5. Low Cost – Absence of paper work in the preparation of KYC will result in lower cost.
6. Instantaneity – This service will be completely automatic so the KYC data will be available instantaneously.
Benefits of KYC
In E-KYC there is no need to carry documents and photocopies. There is no danger of documents being stolen and misplacing them. No paper means no straw and no harm to our environment. Similar to customers, it will be convenient and beneficial for service provider as well.