Otp based ekyc

The Consumer agrees that following terms and conditions shall be applicable for opening the Account using the OTP based Ekyc and Account opening – • Any new Consumer of the Bank may open the Savings Account by following the OTP based Aadhaar verification of the Bank through the • The Consumer agrees that the Consumer has no objection in authenticating itself with Aadhaar through the Platform and hereby gives express consent to the Bank to use the OTP (One Time Pin) received by the Consumer from UIDAI on its registered mobile number and provided by the Consumer to the Bank and the Consumer Aadhaar Number/VID for Aadhaar Based authentication for the purposes of opening the Savings Account with the • The Consumer understand that the Consumer is sharing the OTP (One Time Pin) received by the Consumer from UIDAI with the Bank for authenticating the Consumers identity through Aadhaar Authentication system for opening the Savings • The Consumer agrees and confirms that the Consumer has not used the OTP based Aadhaar (e-KYC) verification to open any other bank account with the Bank or any other bank in • The Consumer agrees to submit the Aadhaar number/VID of the Consumer with the Bank and for the purpose of opening the Savings Account voluntarily gives consent to the Bank to: • Use the Consumers Aadhaar Details to authenticate Consumer from • Use the Consumer Registered Mobile Number in the Bank records for sending SMS alerts to the Consumer. • Link the Aadhaar Number to all Cons...

Context Know Your Customer (KYC) is essential for obtaining Financial, Healthcare, Insurance, and Telecom services around the world. In the Indian context, until Aadhaar opened up its APIs, KYC was a laborious process costing billions to services providers and inconveniencing customers with a mountain of paper identity documents. The thoughts here are confined to the Banking sector but applies to other sectors equally. eKYC “assisted” With the advent of electronic KYC or eKYC using the Aadhaar biometrics platform, things haven’t changed a lot. It certainly has reduced paper documents. However, eKYC is still done in “assisted” mode – meaning either the customer has to be present at the Bank or a Bank Executive has to reach the customer to collect the biometric data. Besides, in most Banks, a paper trail is still maintained despite the biometrics data – reasons best known to themselves. What was costing the Banks earlier is what is costing today – perhaps more with the new biometric devices and the cost to maintain them. eKYC “unassisted” The Reserve Bank of India (RBI) took a significant step in December 2016 to allow opening of deposits and borrower accounts using OTP based eKYC, albeit with some restrictions (RBI notification on 08 December 2016, Chapter VI – Customer Due Diligence (CDD) Procedure – Clause 17 and 38 amendments). This has opened up the opportunity to provide this service to customers at the comfort of their homes at a vastly reduced cost to Banks. This wou...

The Central Know Your Customer Registry (CKYC) is a centralised depository of KYC documents of customers availing various services of the financial sector. CKYC is created with the intent to reduce the burden of submitting KYC documents for verification when starting a new financial relationship with a new finance company. Background of CKYC Section 73 of the Prevention of Money Laundering Act, 2002, gives the central government the authority to frame various rules and regulations to curb down on black money. With this authority, the Central Government introduced CKYC to ensure one KYC for individuals to buy or invest in financial instruments. The Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI) is the supreme body that manages the CKYC registry. Features of CKYC • CKYC is a 14 digit number linked with the ID proof. • Customer’s data is safely stored in an electronic format. • The documents submitted are verified with the issuer. • All the concerned institutions are notified when there are changes in KYC details. How CKYC Works It’s inevitable that you undergo the process of CKYC if you are a potential stock market or Impact on Existing Mutual Fund Investors The existing mutual fund investors are not required to undergo the process of CKYC. However, this might change in the future. If an existing mutual fund investor decides to invest with a new mutual fund house, then he/she must mandatorily undergo the CKYC process. How to Check CKYC...

• The true convenience of digital banking is when you can take care of all your banking and financial needs from the comfort of your home. But the purpose is defeated if the first leg of the transaction, i.e. opening the account, requires you to visit a physical branch. Until recently, most banks offered e-KYC as a solution. However, that required a visit to the branch to avail the full suite of services. But now with banks offering full-fledged digital accounts, video-KYC is slowly becoming the norm. Let us understand the differences between the two. What is KYC? KYC is the process carried out by financial institutions to verify the identity of their customers, as per the rules defined by the Reserve Bank of India (RBI). It is done when you want to initiate any kind of banking transaction, such as opening an account, applying for a loan or credit card, etc. This process can be done mainly in two forms - half KYC (also known as e-KYC) and full KYC (now also done digitally via video, hence video-KYC). What is full-KYC? • Full-KYC requires physical verification of documents for identity and address proof, as prescribed by the RBI, such as driver’s license, passport, PAN card, etc. Click • To complete full KYC, you can go ahead with or without Aadhaar. Choosing Aadhaar requires biometric authentication, while the non-Aadhaar method needs you to present your documents physically at the branch. • Once full KYC is completed, you can access all the services offered by the bank fo...

Today, it is possible to perform the KYC (know your customer) process of your customers using multiple channels. Owing to the rapid wave of digitisation sweeping across India’s financial services space, market regulators have stepped up to allow digital modes of verification. Here are the different types of KYC that are being used for the customer identification process. Physical KYC Physical, or paper-based KYC, refers to the process of submitting self-attested copies of proof of identity (POI) and proof of address (POA) documents. This requires customers to be physically present at the bank branches or at the premises of the financial institution (FI). Benefits of physical KYC Since this is how KYC has been done traditionally, both FIs and customers alike are familiar with the process. This provides a level of comfort, especially in areas where awareness about digital modes is under penetrated. Challenges of physical KYC It is a cost intensive process. The KYC documents have to be stored physically while also ensuring their confidentiality is not compromised. FIs need to ensure they have a physical presence at enough locations to make themselves accessible to customers. Given that paper-based KYC is a manual process, it has a relatively higher turnaround time and could be prone to operational inefficiencies. Aadhaar eKYC This type of KYC refers to the verification of a user’s identity using their Aadhaar details stored with Unique Identification Authority of India (...