In the mid of the October last year UIDAI Head Nandan Nilekani Launched Aadhaar E-KYC Based Instant Prepaid Cards and this time UIDAI tied up with Banks to give best and fast banking services to the customers. Now with this tie up one can open the bank account electronically. We call this e-KYC. In this system one need to give his/her Aadhar card 12 digit number, one photograph and give contact details etc. and the account will open instantly. This will completely the paperless work.
What is E-KYC?
The Aadhaar ecosystem will also power E-KYC (Electronic- Know Your Customer), which will utilise the E-KYC APIs, to allow citizens to avail different services without carrying any physical identification proof. To conduct an E-KYC check, an E-KYC request, along with Aadhaar number and authentication is sent as an input and the name, address, date of birth, gender, and photograph, is received by the agency.
The UIDAI has partnered with 20 banks, and has also tied-up with the NPCI (National Payments Corporation of India) and Visa for payments powered by E-KYC. E-KYC can be deployed for customer verification for mobile connections, bank accounts, insurance, LPG connections, state government services, train travel and any service where verification is required. The ecosystem now offers 35 authenticating devices.
API is the abbreviation for Application Program Interface. API can said to be the building blocks available to the Software Programmer to develop a good software application. It allows demographic verification, including name, address, PIN code among others via agent based fingerprint or iris authentication and OTP based self service authentication.
This will boost the banking system as well because there are many groups in line for applying the banking license as RBI has make soft the banking rules for open new banks.
Opening an account with this ease is the welcome step for the people too as it will save both the time and hassle to visit the bank, produce original as well as the Xerox copy of the document. Banks are very strict with the documents and they need two proofs, one for ID proof and second for residence proof. There is a large number of paper, terms and conditions on which people need to sign for having a bank account.