Revenue Online E Kyc Authentication

Know your customer or kyc history dates back to 2001 in the usa as a part of the patriot act in the wake of 9 11.

Revenue online e kyc authentication. Sebi registered intermediaries for reasons such as online on boarding of clients customer convenience increased efficiency and reduced time for client on boarding would prefer to use aadhaar based e kyc facility to complete the kyc of the client. In the e kyc process the subscribers would be required to authenticate their connection through aadhaar based online process and the company would store customer records for issuing mobile. Know your customer kyc based authentication method for financial services through the internet. Digital finance companies could be allowed to verify customer antecedents through the aadhaar database according to a note that envisages grant of the electronic kyc facility to non banking firms.

The e kyc service provides an authenticated instant verification of identity and significantly lowers the cost of paper based verification and kyc. A paperless know your customer kyc procedure wherein the identity and address of the user are verified electronically through aadhaar authentication. Getty images for multiple players to be able to access this service kyc authentication agencies will require new licences. The securities and exchange board of india sebi has allowed the national stock exchange nse to undertake e kyc aadhaar authentication services of the unique identification authority of india uidai.

However this method of online e kyc is not available to all agencies and may not be suitable due to some of the following reasons. On may 12 2020 sebi had permitted eight entities to undertake the aadhaar authentication service of the unique identification authority of india uidai. Online e kyc requires reliable connectivity. Before the 2000s kyc practices were directed at preventing money laundering but after 9 11 everything changed.

Uidai built ekyc with a goal of simplifying customer acquisition and processing especially in the wake of indian governments digital india initiative ekyc played a vital role helping poor get. The main objective of e kyc is to register the customer with least amount of paper work and in the shortest possible time. Introduction to kyc or know your customer.