What is eKYC? eKYC is the digital way to get your verification done to avail of different banking services, mutual funds and more. Its full form is Electronically Know Your Customer.
Compared to KYC, eKYC takes less time to be completed. It is because the eKYC is conducted using One-Time Password (OTP) based Aadhaar verification.
It assists companies in onboarding customers faster and has an edge over competitors.
The Computer Age Management Services (CAMS) has recently launched eKYC using an OTP based Aadhaar authentication.
What is CAMS' OTP based Aadhaar verification?
Recently, CAMS has developed a solution that would help new customers complete their KYC in a jiffy.
Unlike earlier times with KYC and XML based verification, the eKYC process would help new subscribers to authenticate their identities without waiting.
Now, a One-Time Password would be sent to the Aadhaar linked mobile numbers of customers. Once the OTP would be punched into the CAMS interface, it would complete the eKYC.
Since the eKYC verification online process is less time taking, companies would be able to add new customers.
In turn, customers would be able to avail themselves of their services faster and avoid all hassles.
It has become mandatory for banking and similar companies to conduct the KYC of their customers. The eKYC process ensures that no illegal activities are being conducted by customers using an organization’s services.
Since companies know about their users’ identities, it helps them carry on transactions with them confidently.
Even existing customers’ KYC is also updated by companies from time to time. Its purpose is to ensure that a user is still a legal entity even after months and years.
Additional Read: All You Need To Know About eKYC using OTP based Aadhaar verification
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.