To go through the Know Your Customer verification process, individuals need to provide proofs of their identity for authentication. However, this process involves a lot of paperwork and time.

To solve the same, UIDAI implemented eKYC or Aadhar-based electronic Know Your Customer system. Aadhar cardholders can avail this facility to establish and verify their identity voluntarily.

There are several benefits of this data management system, some of which include -

• With this system, individuals are not required to submit their documents on papers. They can establish their identity by using this cloud-based online data storing system anywhere, anytime.
• This system only works if the Aadhar cardholders are willing to share their details with the service providers. Moreover, the service providers can only fetch the data after OTP and biometric verification.
• Through electronic Know Your Customer process, service providers can avail and authenticate the credentials of customers in real-time.
• Due to its digital facility, all available information through this system is tamper-proof.
• This digital format of data is as authentic as the paper format as per the Information Technology Act, 2000. It is because a digital signature and encrypted data system help to send the information to the service providers.
• All regulatory organisations can audit the request regarding customers’ information from service providers through an online portal given by request senders. This is to control offenses like identity theft on digital platforms.

Individuals need to comply with KYC to opt for an easy verification system while availing financial services like loans and credit cards, such as the Bajaj Finserv RBL Bank SuperCard.

How to update KYC?

Individuals can update their KYC either by visiting the branch or the official website of their financial company. They need to submit KYC documents, go through an In-Person Verification process and also a digital signature to update electronic Know Your Customer system.