What is e-KYC?

An e-KYC is a paperless and forgery-proof method of online authentication based on Aadhar card. To be more precise, it is a service, where you authorize and permit the KYC process to be performed electronically. It has reduced document verification time significantly. The process that used to take weeks earlier can now be completed in a matter of days.
 

SEBI’s regulations have made it mandatory for customers to be KYC compliant if they wish to make any mutual fund investments. This was up till now a hurdle in the path of customers who were willing to invest. But now with the provision of the e-KYC facility and Aadhar based authentication, things have got easier.

How to register for e-KYC?
 

1. Visit the authentic online portal to initiate the e-KYC procedure. These portals must be the  ones supported by KYC Registration Agencies(KRA)
2.  Create a new portfolio with a valid email id and fill in the necessary details, and also upload the required documents including e-Aadhar, Pan Card and signature image.
3. After having provided the Aadhar number and the registered mobile number, you are navigated to Aadhar authentication window where you need to enter the pin and OTP sent to your registered mobile number. 
4. Post this you need to submit your self-attested copy of e-aadhar.
5. The last step of the entire process involves verification and validation from the UIDAI (Unique Identification Authority of India) database, which marks the completion of e-KYC process.

 Benefits of e-KYC
 

• Digitization of KYC has significantly reduced processing time, allowing you to focus on other important tasks.  
• e-KYC facilitates smooth proceedings by eliminating cost of storage and paper handling, along with the risk of forgery. 
• The most significant benefit of e-KYC is the ability to invest in mutual funds instantly. With OTP-based validation, you can invest up to Rs.50, 000 right away. And, in the case of validations based on biometrics, there is no upper limit on your investments.  
• It has all the perks of an inclusive, secure and convenient authentication method which does not compromise on security.

Process Behind e-KYC

This process digitally authorizes the UIDAI to give your demographic details along with digitally signed and encrypted photograph to service providers.

To explain this better, this process involves the verification and match conducted by Central Identities Data Repository of the UIDAI, where the attributes considered include Aadhar number, demographic details, biometrics and OTP. If the submitted data matches with the available data, the validation is considered authentic.
 

To sum up, don’t procrastinate, get your e-KYC done and enjoy the benefits.