Mobile wallet and e-commerce service, Paytm, has introduced the Aadhaar-based electronic Know Your Customer (eKYC) in order to make the process of customer identity verification paperless, convenient and real-time. The integration of Aadhaar s eKYC process to the online wallet comes ahead of its launch of payment banking services. Typically, a regulated entity like banks or telecom operators need to carry out certain customer identification procedures, which constitute a Know Your Customer (KYC) process of verification. The KYC involves verification of an applicant s original documents of proof of identity and proof of address in person, filling up of forms, attaching latest copies of identity and address proof, a photograph, verification of other details, data entry into customer information management systems, and then all the paper documents are archived. Also Read - Best online gaming platforms to play multiple games: Paytm First Games, PlayerzPot and moreAlso Read - Internet down: Zomato, Paytm, Disney+ Hotstar, Amazon, Myntra, many other global services suffered massive outage
Although the procedure is essential for verification and management of physical document to avoid identity theft, financial fraud and money laundering, it is still a tedious process with the heavy paperwork. However, Paytm s Aadhaar-based eKYC will make the entire process paperless, instant and secure. Now, instead of sending in documents, an identity of a customer can be instantly verified by matching the biometric scan of their fingerprint or iris against their Aadhaar database. And in case of a customer requesting to upgrade their Paytm account, they can either choose to visit the closest Paytm centre or request a visit from a Paytm agent at their preferred address. The eKYC integration will allow Paytm agent to carry out a quick and easy verification process using mobile-based biometric scanner. Consequently, customer s consent is captured using Aadhaar based eSign. Additionally, since the eKYC process is carried out on the basis of biometric details, it makes the process a lot more secure, thereby reducing the risk of forgery. Also Read - Zomato IPO: How to invest via bank, Zerodha, and Paytm Money
We are building India’s largest eKYC customer network to bring half a billion Indians to the mainstream economy. We have aggressive targets to become the largest Aadhar-based eKYC company in the country, said Vijay Shekhar Sharma, founder and chief executive officer, Paytm. Commenting on Paytm s move, Nandan Nilekani, Infosys co-founder and former Chairman of UIDAI said, “The presence less, paperless and cashless era is coming soon to the smartphone in your hand!” Also read: Payments banks system should be fraud free for its growth: Paytm
Recently, Reliance Industries Chairman and Managing Director Mukesh Ambani at the company s Annual General Meeting on September 1 also announced the integration of the eKYC process for issuing Reliance Jio SIM cards. He said that the e-KYC system will allow subscribers to get their connection activated in 15 minutes. Also read: Reliance Jio promises SIM activation in 15 minutes via e-KYC
With a similar aim as eKYC, which is to promote paperless identification procedures, and digitizing all essential documents of a consumer, government recently announced a mobile app called DigiLocker. Part of Prime Minister Narendra Modi s Digital India project, the app allows a consumer to upload and save all their government-issued documents including PAN card, Aadhar Card, college certificates, property documents and other such important documents online, which eliminates the need to carry around original documents at all times.