You’re exploring the idea of a zero-balance savings account, drawn in by the promise of flexibility and no minimum balance requirements. You read through the benefits: no penalties, easy access and complete control over your funds. So, you decide to open an account and begin the online application.
As you go through the steps, you encounter e-KYC. You quickly search the term to understand what it is. And that’s exactly what this guide will explore: how e-KYC simplifies the process of opening a zero-balance savings account and makes your application quicker and more convenient.
What is an e-KYC?
e-KYC is a digital process to verify your identity without physical paperwork. It stands for “electronic Know Your Customer,” and it’s used by banks and financial institutions to authenticate customers quickly and securely.
With e-KYC, you can submit your personal details and documents online, which are then verified against government databases. This makes opening accounts, like a zero-balance digital savings account, much faster and easier.
Kinds of e-KYC
Here are the key types of e-KYC in India:
- OTP-based e-KYC: This method involves entering your Aadhaar number and receiving a one-time password (OTP) on your registered mobile. You enter the OTP to complete the verification instantly. It’s a quick and convenient way to authenticate your identity online.
- Biometric-based e-KYC: In this process, you provide your Aadhaar number along with biometric details like fingerprints or an iris scan. The information is then matched with the UIDAI database for secure verification. This adds an extra layer of security compared to OTP-based verification.
- Offline e-KYC: You download an Aadhaar XML file containing your details from the UIDAI website. This file is digitally signed and can be submitted to the institution for verification. It’s a secure option that protects your data without requiring an internet connection.
- Video KYC: This process connects you with a bank representative via a live video call. During the call, you display your ID and answer a few questions for identity verification. It offers a safe, remote way to complete the e-KYC process from anywhere.
How to do e-KYC for bank account?
Here’s how to complete e-KYC for a bank account in detail:
Step 1: Start application
Begin your online bank account application and select the e-KYC option for identity verification.
Step 2: Choose verification method
Depending on the bank, select OTP-based, biometric, offline or video KYC. For OTP, enter your Aadhaar number and the OTP sent to your registered mobile. For biometric, provide your fingerprint or iris scan for authentication. Video KYC involves a live video call with a bank official, where you present your ID and verify details.
Step 3: Submit details
If using offline e-KYC, download and upload the Aadhaar XML file. The bank will cross-check your data with the UIDAI database.
Step 4: Complete verification
Once the bank verifies your details, the e-KYC process is complete, allowing you to proceed with the account opening without physical paperwork.
Benefits of e-KYC
Here are the benefits of e-KYC for opening a bank account:
- Convenience: Complete verification from anywhere, avoiding physical paperwork and in-person visits.
- Speed: The digital process allows for instant authentication, reducing the account opening time significantly.
- Security: e-KYC uses secure methods, like OTP and biometric verification, ensuring data protection.
- Cost-effective: It eliminates costs associated with physical document handling and verification.
- Eco-friendly: By going digital, e-KYC reduces paper usage, supporting environmental sustainability.
Endnote
To complete e-KYC, you’ll need your Aadhaar number and a registered mobile phone for OTP verification. If you’re opting for biometric KYC, you would need to be there in person at an authorised service provider or use their apps for fingerprint or iris scans. For video KYC, a smartphone or computer with a camera and a stable internet connection is essential.
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