E-KYC

 E-KYC is a combination of paperless customer onboarding, promptly 

identifying and verifying customer identity, maintaining KYC profile in a 

digital form and determining customer risk grading through digital means. 

It is a faster process of doing KYC of customer verifying his/her identity 

document or bio-metric data. 

The e-KYC module can be divided into following two types1

based on the 

customer’s risk exposures:

(a) Simplified e-KYC: Where a customer can be onboarded and verifying 

customer identity electronically using simplified digital KYC form in 

case of proven lower risk scenario. No risk grading will be required 

while onboarding of customer. However, sanction screening should be 

undertaken and KYC review shall be done every five years; and

(b)Regular e-KYC: Where a customer can be onboarded and verifying 

customer identity electronically, a prescribed digital KYC required to be 

filled in and stored as well as a risk grading exercise required to be 

documented. However, based on the risk grading exercise where 

customer rated as high risk or some specific scenarios (for example. 

PEPs), some Enhanced Customer Due Diligence (EDD)2

required to be 

undertaken as per provided sample in the section 6.2 of this Guideline. 

2.2 Process

The traditional KYC process requires to be filled in the KYC form and 

collect photo ID and signature of the customers along with required 

documents. All the way it's a manual process. However, e-KYC is a digital 

process where financial institutions can open a customer account by fillingup a digital form, taking photograph on the spot, and authenticate the 

customer’s identification data (ID No., biometric information, address proof) 

instantaneously. Such bio metric information or digital signatures or 

electronic signatures may be used for transaction authentication as well. The 

customer onboarding process may undertake via followings means:

(a) Assisted customer onboarding: Where a financial institution or its 

nominated agent or third-party visit customer or customer visit financial 

institution or its nominated agent or third party’s premises and open 

account with the direct assistance of financial institution or its nominated 

agent or third party; and

(b) Self check- in: Where customer can on board at his own by using kiosk, 

smart phone, computer or other digital means abiding by the norms of 

this e-KYC Guidelines. Self check in shall be allowed for face matching 

model only as described section 3.3 of this Guideline

Objectives

The key objective of promoting e-KYC is that it can provide an ample scope 

of quick onboarding of customer by verifying customer identity through 

digital means which can leverage saving of time and provide ease both for 

the client and service providers. Additionally, e-KYC can save institutional 

cost as well as foster growth of customer base compare to the traditional 

growth. Therefore, the basic objectives of implementing e-KYC are as 

follows:

 Establish good governance within the financial industry;

 Enhancing the growth of financial inclusion;

 Protect financial sector from abuse of criminal activities;

 Ensure integrity and stability of the financial sector;

 Manage ML/TF risks;

 Reduction of cost related to customer on boarding and managing 

CDD;

 Promote fintech services; and 

 Participate in the national level well-being.