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A Step Towards Paperless KYC In Banking



Dear friends, reader, fellow bloggers, and everyone else. Hello and good day. As our team sat down to talk about a few matters of importance, we got into small talk about how technology has made our lives so convenient, and have spoiled us to a certain extent. Take all the technology away, and we may no longer know how to do a lot of things. But, knowing that nothing is going away any time soon, we are glad to live in this day and time. It is a blessing.

So, today, let us talk about one of the many features that have been introduced in banking that has made it so easy, convenient, and lovable. What do you know about paperless KYC in Banking? First of all, let us understand what KYC is, and how this becoming paperless is a boon in disguise.

KYC simply means Know Your Customer. When you open an account or a mutual funds’ account with your bank, you are required to submit a lot many documents as part of your verification and identification. All these put together are called KYC. The Ministry of Finance of the Government of India has finally approved paperless documentation, verification, and authentication. This is called paperless KYC or eKYC.

In the letter addressed to banks across the nation, the Reserve Bank of India (RBI) said that the “letter issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number may be accepted as an ‘Officially Valid Document’…while opening accounts based on Aadhaar, if the address provided by the account holder is the same as that on Aadhaar letter, it may be accepted as a proof of both identity and address.” This decreases paper submission by a great deal.

Here’s how it works. Instead of carrying hard copies of documents each time,those holding the Aadhar card can give their banks the necessary permission to access their personal data from the Unique Identification Authority of India (UIDAI’s)data repository. Once the customer approves of it, the banks can access and verify the following data:

  1. Photograph
  2. Sex
  3. Mobile or other contact number
  4. Email ID
  5. Address Proof& other identification

In order to put paperless KYC into action, banks need to do a few things. Below are some of them:

·         They first have to take the UIDAI’s permission to use this service.

·         As informed by the RBI, once the UIDAI grants the permission, banks will have to use bio metric devices that will help in scanning for data.

·         Once the fingerprints are scanned using the bio metric device, banks would only need the customer’s Aadhar card number to get access to all the other data.

·         All the data mentioned above can then be fetched from the UIDAI database and used.

·         After the verification is completed to the banks’satisfaction, customers can then open their accounts without further delay.

·         The data of every customer is accessed online and in an extremely secure environment.

Don’t you agree with us when we say that technology truly has made our lives ever so convenient? Thanks to our bank’s mobile apps and the exceptionally efficient and time saving eKYC or paperless KYC, working around our finances have become so easy. So, what are you waiting for? Take a step towards paperless KYC in Banking, today.

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