{"id":3816,"date":"2022-01-31T12:18:01","date_gmt":"2022-01-31T12:18:01","guid":{"rendered":"https:\/\/inforeatech.com\/cs-craft\/aadhaar-paperless-e-kyc\/"},"modified":"2026-07-22T15:50:58","modified_gmt":"2026-07-22T10:20:58","slug":"aadhaar-paperless-e-kyc","status":"publish","type":"post","link":"https:\/\/www.craftsilicon.com\/asia\/aadhaar-paperless-e-kyc\/","title":{"rendered":"Aadhaar Paperless e-KYC for Borrower Onboarding"},"content":{"rendered":"

Paperless e-KYC (Know Your Customer) is presented by UIDAI to enforce inclusion, privacy & security. It will allow Aadhaar number holders to voluntarily utilize their cards to confirm their identification in a paperless and digital manner.<\/p>\n

RBI has decided to invite applications from NBFCs, Payment System Providers and Payment System Participants to obtain digital Aadhaar authentication. Banks & Financial Institutions with licenses are adopting the data security measures for Aadhaar Vault to enable e-KYC integration and seamless data verification.<\/p>\n

Craft Silicon has recently tied up with Karza technologies to offer e-KYC services to the small finance banks and their BCs. It aims to offer seamless integration and real-time data verification.<\/p>\n

\"\"<\/p>\n

The offline e-KYC approach allows Aadhaar cardholders to provide their KYC data for authentication quickly and simply. The KYC details are in an XML format. One can easily download an XML file version of their KYC information as an Aadhaar cardholder and give it to the requesting service providers or organizations. The UIDAI substantiates the XML file, which is a tamper-proof document, and it is signed electronically, adding to the security of the data being transmitted. The agencies can additionally verify the user’s identity by utilizing their own OTP or facial authentication.<\/p>\n

Key Benefits of adopting e-KYC<\/strong><\/span><\/h6>\n

 <\/p>\n

\u25cf\u00a0 \u00a0\u00a0Cost Reduction<\/strong><\/p>\n

E-KYC significantly lowers the cost of paper-based verification and KYC as it reduces the paper expenses that are avoided immediately, and the resources required to maintain it, like people, inventory, storage, etc resulting in massive cost-cutting.<\/p>\n

\u25cf\u00a0 \u00a0\u00a0Privacy<\/strong><\/p>\n

Privacy is addressed under E-KYC as the Aadhaar number of the customer is not disclosed, only a reference ID is shared. Moreover, core biometrics (fingerprints or iris) are not required for such verification. The Aadhaar number holder gets a choice of the data (among the demographics data and photo) to be shared giving the control in the hand of the customer.<\/p>\n

\u25cf\u00a0 \u00a0\u00a0Security<\/strong><\/p>\n

UIDAI digitally signs Aadhaar KYC data to ensure its validity and detect any manipulation. Agencies can also use their OTP\/Face Authentication to verify the data. Residents have control over their data since KYC data is encrypted using the phrase given by the Aadhaar number bearer.<\/p>\n

\u25cf\u00a0 \u00a0\u00a0Inclusion<\/strong><\/p>\n

According to the\u00a0Signicat report (2020)<\/a>, 40% of consumers abandon the banking onboarding process in between because of the time required to complete the steps, or the need to reveal excessive personal information. E-KYC helps to reduce the time and will resolve the issue of privacy as it is voluntary and Aadhaar number holder driven.<\/p>\n

Process<\/span> <\/strong><\/span><\/h6>\n
    \n
  1. Aadhaar card is given to the bank officer who takes a note of the Aadhaar number<\/span><\/li>\n
  2. Authentication is done through a fingerprint or image of the retina. Otherwise, one-time password ( OTP ) based authentication can be done.<\/span><\/li>\n
  3. The value is transferred to the UIDAI using secure servers as soon as the instrument reads the biometric data. The input biometric data is matched against the value stored in the central database for that specific Aadhaar number.<\/span><\/li>\n
  4. Following successful verification, the UIDAI will notify the corresponding bank or agency of all credentials, such as addresses, dates of birth, pictures, and so on, effectively eliminating the need to carry multiple needless papers.<\/span><\/li>\n
  5. <\/li>\n<\/ol>\n

    The UIDAI allows an agent or an organization to maintain a digital or soft copy of all relevant information on their remote server, giving them the flexibility to utilize them as and when they are needed.<\/p>\n

    \"eKYC<\/p>\n

    Way to access e-KYC<\/span><\/h6>\n

    Any person who has their Aadhaar card will be able to easily access their e-KYC data by following steps:<\/p>\n

    \u00a0\u25cf Visit:\u00a0https:\/\/uidai.gov.in\/<\/a><\/span><\/p>\n

    \u25cf Download the Paperless Offline e-KYC form<\/span><\/p>\n

    \u25cf The next step will be to fill up the form carefully and submit the same<\/span><\/p>\n

    \u25cf The applicable information will be available for downloading the same as an XML file that will be digitally signed by the appropriate authority of UIDAI<\/span><\/p>\n

    <\/h6>\n
    <\/h6>\n

     <\/p>\n

    Data covered in offline e-KYC<\/strong><\/span><\/h6>\n

    Service providers or agencies will be able to authenticate the details. Let us see what details they will be able to see while downloading or getting offline e-KYC data included in the XML.<\/p>\n

      \n
    1. Name of the Resident<\/span><\/li>\n
    2. Download the Reference Number<\/span><\/li>\n
    3. Address<\/span><\/li>\n
    4. Photo<\/span><\/li>\n
    5. Date of Birth or Year of Birth<\/span><\/li>\n
    6. Gender<\/span><\/li>\n
    7. Mobile Number in hashed form<\/span><\/li>\n
    8. Email Address in hashed form<\/span><\/li>\n<\/ol>\n

      The Aadhaar\u00a0Offline e-KYC data is encoded using a “Share Phrase” granted by the Aadhaar holder at the time of download, which must be shared with service providers or agencies for them to access a person’s KYC data or\u00a0user information.<\/p>\n

      Ways to share Aadhaar Paperless Offline e-KYC Data<\/strong><\/span><\/h6>\n

      Data can be shared with the verifying agency by the Aadhaar number holder in digital or physical format along with a shared phrase.<\/p>\n