The Supreme Court of India recently announced the rules and regulations regarding the Banking and insurance – eKYC and digital on-boarding solution and has made mandatory for the people of India to avail government facilities. The Supreme Court also ordered that the Government cannot be hold barred from using eKYC as singular identification of banking details and will be extensively used for banks and insurance companies. So what is the eKYC and digital onboarding and why do you need it and also how to update the eKYC?
What is eKYC in the banking sector?
The eKYC is a process that is required by banks for identifying their customers and their personal details that might be used as a singular identification process of your personal details like bank accounts or other information. The KYC can be availed online which is popularly termed to be eKYC or online Know Your Customer. The eKYC contains biometric details of as well as demographic details of each and every customer and clients who have an account in the respective bank. Banks, financial institutions and other companies are making the verification of your personal identification through the single identification system namely eKYC which is also related to the use of Aadhar Card. Government rules announced that banks cannot be stopped from using eKYC as the single verification mode for opening of bank accounts, verifying transactions and also to successfully process UPI payments.
Mode of availability and registration of eKYC
Once you are eligible to apply for an eKYC you will need to apply for one. This is a little tedious process and might take a bit long depending on the enrolment centres which are the banks websites and also on the work progress of the centres available. The whole process will involve your biometric registration, submitting all information, verification of your details and then finally getting the eKYC. The application process can also be carried out offline which is simply KYC. The importance of eKYC and Digital Onboarding for Banks and Insurance sector is duly noted of and thus is a must for anyone who wants to open a bank account.
Process of digital onboarding and eKYC
eKYC is needed for lot of purposes like authentication and transaction benefits. To make sure you get all these benefits without any error online update eKYC data. Digital onboarding is also a mandatory process which provides the opportunity to create a fast and forward approach for banks and insurance companies to authenticate and provide a diligent customer experience. There are basically two factors due to which eKYC needs to be updated. Biometric update and demographic update. For biometric update all residents are requested to update their details along with personal verification every few years. To avoid any kind of identification failure you must also update the necessary demographic conditions you are living such as during re-shifting of houses the demographic details should be updated of the new place .