What are the full form of eKYC and more detail?

Do you know what is the full form of eKYC or what is EKYC, if you do not know about it, then we are going to give you complete information about EKYC, please read this article completely.

What is the full form of eKYC?

eKYC full form – Electronic Know Your Customer i.e. the identity of your customer has to be confirmed electronically or digitally.

what is ekyc

After knowing the eKYC full form, now we know what is eKYC

KYC is the acronym for Know Your Customer. Financial institutions like banks and non-banking finance companies (NBFCs) have made KYC norms mandatory before providing any financial services to customers.

KYC is done for the purpose of establishing the identity of any customer and verifying his/her credentials. The eKYC process, often referred to as paperless KYC, is the process of electronically verifying a customer’s credentials.

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Now you must be thinking about the process of online KYC verification. eKYC is also called as Aadhaar-based eKYC as your identity is verified electronically through Aadhaar-based verification.

This means that your Aadhaar details, such as name, address, gender, date of birth, mobile number, and email address are retrieved by the service provider from the database of the Unique Identification Authority of India (UIDAI).

 Thus, Aadhaar-based eKYC provides your identity and address proof to the service provider instantly, eliminating the need for tedious personal verification.

What is the process of ekyc?

The eKYC registration process is quite simple. As a subscriber, you just need to provide your Aadhaar number and give consent to the service provider to access your data. The provider then accesses the online UIDAI database and verifies your identity, address, and other demographic details.

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Here you need to note that Aadhaar eKYC is dependent on the information provided by an individual to UIDAI for obtaining the unique 12-digit Aadhaar number. If you have got your Aadhaar number, and want to invest in mutual funds later, or open a Demat account

Aadhaar
Aadhaar

In order to invest in the stock markets, the fund house or broking firm will use the eKYC Application Programming Interface (API) to access. Your Aadhaar details. Through the eKYC API, any licensed service provider can verify the customer. Remember, only UIDAI-licensed users can avail the facility of KYC verification online.

FAQ related to eKYC

1. Why is KYC necessary?

When you get your KYC done, you give information about your identity, address, and financial history to the bank. This helps the banks to ensure that the money invested in it is not meant for money laundering / illegal activities. KYC is mandatory even for mutual fund investments.

2. What are the types of KYC?

The process of KYC is done in two ways. 1 E KYC – E KYC is the process under which financial institutions get complete information of their clients and customers through the online mediums using the internet. This process is also called Aadhaar based process.

3. What does it take to get KYC done?

These KYC documents include your Identity Proof, your Address Proof, and your recent passport size photograph

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Conclusion –

In this article, we have told you that eKYC full form, and have given you all the information related to eKYC, hope you have liked the information.

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