E-KYC Authentication

e KYC is electronic Know Your Customer policy which is an important step required to prevent financial fraud, money laundering, identity theft and terrorist financing. This is needed in banks to understand and know the customers better and assist them in managing risks prudently. At Squaria, we enable eKYC services through banks which is legal and regulatory requirement. We help the rural people to understand why it is needed, its role and objectives. After opening a bank account, bank needs to identify and verify the customer after collecting required documents and then perform KYC procedure. Not only in banks, KYC is required while applying a credit card or loan, a locker facility, etc. For eKYC policy, a customer is the one who maintains an account or has a business relationship with the bank. He may also be the beneficial owner, i.e. one on whose behalf there is an account maintained. Any person who is involved with the financial transaction in the bank should also have registered KYC policy.

An innovative solution, eKYC, is to complete the Know Your Customer process electronically with direct authorization by the resident. The purpose of the e-KYC Aadhaar service is to facilitate individuals to authorise service providers to receive electronic copy of their proof of identity and address. Using this eKYC solution, one can provide services instantly to rural residents as the KYC details of the customer are already verified and retrieved from UIDAI server online.

Different features of eKYC are as follows:

  • Instant account creation with quick turn around time
  • Hassle free opening of bank accounts for customers
  • No physical submission of documents required
  • Individuals have to give information like legal name or any other change in names, and the correct permanent address to banks
  • They need to verify original documents for verification and also submit a copy for the bank’s record keeping
  • Identity proof includes passport, PAN card, driving license, ration card or any reliable identity card
  • Address proof includes utility bill, bank account statement, ration card and letter from employer
  • The bank has right to terminate the banking relationship due to non-furnishing of these documents or non-cooperation by the customers. This is done after issuing due notice to the customers.