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What Is Aadhaar Based e-KYC? How Does It Work?


Electronic Know Your Customer, better known as e-KYC is a service, which can be availed by persons who have Aadhaar numbers.


This will avoid submitting a number of documents such as address proof, ID proof, and others while opening a bank account, mutual fund accounts etc.

This service is offered by UIDAI and it's main purpose is to verify customer credentials digitally.

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What Is Aadhaar Based e-KYC? How Does It Work?

How it Works?

Organizations wanting to use e KYC service will have to get approval and authorization by the UIDAI.

When availing for e-KYC service, individuals have to authorize the Unique Identification Authority of India (UIDAI), by explicit consent, to release identity or address through biometric authentication to the bank.

The UIDAI then transfers the data comprising name, age, gender, and the photograph of an individual, electronically to the bank.

Information thus provided through the e-KYC process is permitted to be treated as an ‘Officially Valid Document' under PML Rules and is a valid process for KYC verification.

Note that information will be pulled from UIDAI only with the consent of the customer.


Authentication will be done through the OTP sent on the registered mobile number. UIDAI server will send OTP to customer's registered mobile. On submitting correct OTP and successful authentication by UIDAI server, the details will be shared.

Now, banks may accept e-Aadhaar downloaded from UIDAI website as an officially valid document.

Which institution can make use of Aadhar eKYC:

  • All Recognized Stock Exchanges
  • Banks
  • Stock Brokers through Recognized Stock Exchanges
  • Depository Participants through Depositories
  • Association of Mutual Funds in India
  • Mutual funds through AMFI
  • KYC Registration Agencies (KRAs)

Read more about: kyc know your customer e kyc
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