What is Aadhaar e-KYC?
KYC (Know Your Customer) is one such process, it means Know Your Customer. Through this, the bank or institution verifies the identity and address of a person. Banks or finance companies submit documents related to photos, identity proof, and address proof of their customers in the process of KYC. When this work is done online or digitally instead of paper documents, it is called Electronic KYC or E-KYC.
E-KYC is a method of electronic authentication of a resident used by banks or organizations. However, you can also do Aadhaar E-KYC through your biometric verification (based on fingerprints, or retina pattern).
Significantly, the Reserve Bank of India has made Aadhaar e-KYC mandatory for all customers doing financial transactions with banks and financial institutions. While e-KYC transactions are executed only after the full consent of the Aadhaar holder.
Along with this Aadhaar Enabled Payment System (AePS) is also enabling financial inclusion for those who are at the bottom of the income pyramid. By the end of December 2022, cumulatively 1610.44 crore last-mile banking transactions have been made possible through the network of AEPS and Micro-ATMs.
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