The Indian government is bullish about the Aadhaar system for a complete digital identity. The best way to see this in action is the various methods implemented for the verification of a cardholder.

There are two primary methods: the online method which involves scanning the Aadhaar QR code on the Aadhaar card with the specified authentication devices. The process is fast, secure, and centrally regulated. It uses UIDAI infrastructure to process the authentication. It works fine except for minor instances where the network becomes an issue reached during an authentication.

Hence there’s another offline method, the Aadhaar XML Paperless e-KYC Process. It involves the use of a downloadable zipped XML file from the UIDAI website. The file includes the information selected by the individual for sharing during a verification process. The file can contain information like the photo, date of birth, etc. to be shared with a service provider, apart from the mandatory name and address.

It does not disclose your Aadhaar number, even in a masked form. Also, email id and password are hashed using an algorithm specified by UIDAI.

The selected fields become a part of the XML file and are digitally signed with UIDAI’s private key. In order to verify the digital signature, the public key is also included in the XML file.

In its document UIDAI says: “… the XML file generated by the Aadhaar number holder using Offline Aadhaar Data Verification Service is a digitally signed document using UIDAI digital signature. Thus, the service provider can verify the demographic contents of the file and certify it to be authentic when doing the offline verification.”

Here is the process to download the XML file:

• Step 1: Go to URL www.uidai.gov.in
• Step 2: Enter ‘Aadhaar Number’ or ‘VID’ and mentioned ‘Security Code’ in the screen, then click on ‘Send OTP’
• Step 3: Enter the OTP received by registered Mobile Number for the given Aadhaar Number
• Step 4: Enter a Share Code which will be the password for the ZIP file and click on the ‘Download’ button
• Step 5: The Zip file containing the digitally signed XML will be downloaded

The offline verification comes in handy when the process cannot happen online or when you have to share the document. The advantage is in the ability to share only the selected information that one wants to share.

Security is a concern though

Offline Aadhaar Download, at a very optimistic level, has been tricky to perform. UIDAI does not specify the exact process of sharing the downloaded file along with the password to any institution. Couple it with the fact that UIDAI steps off from the centralized authentication.

The Aadhaar XML Download, once shared with the password, can be sent forward to be used again. There is no control over who could open the file. Strict data retention policies are governing the use of these documents, but a leak could see the data getting exposed as we have seen in the past with Aadhaar.

The use of such a document is a future, we would need it till we have significant people with online connectivity in our country. The process by UIDAI in itself would evolve to accommodate these concerns and will improve in the future.

How should it be used

The Aadhaar XML download of anyone is a piece of sensitive information that should be processed and handled with care. It should never be saved without proper security and encryption to any server. The processing of the information should, as much as possible, be done on the client and never pushed to the server.

Most Background Verification Companies in India offer this source of employee verification in their services.

We, at SpringVerify, an employee verification company, have built BGV verification processes using XML files and we always process it in an encrypted environment on the client device. Never on a server.

FAQs

What details does the Aadhaar XML file contain?

• Reference number
• Resident’s name
• Gender
• Photo
• Date of Birth
• Mobile number in hashed form
• Email in hashed form

What is XML format?

XML format is a digitally signed, shareable, and protected document. Visible data includes only the name and address while other details are optional. Once your Aadhaar Card XML File Download is complete, you can use it for verification purposes.

Benefits of e-KYC:

• E-KYC background verification services can only be used by verified agents and institutions. Hence, your credentials stay in safe hands.
• The biometric scanners need to be verified as well. Hence, offering better security.
• It is free of cost.

That was all about Aadhaar Card XML Download, there are plenty of other documents you can use for verification purposes. If you’re searching for more details around it, here’s what can help you:

• How can Pan Card be misused? And ways to prevent them
• Importance of Identity Check and How It Works
• Aadhaar masking: Here’s what you need to know about
• Passport Verification Using MRZ – SpringVerify India Blog
• A Unified Driving Licence format in India: why was it important?
• Passport Verification Using MRZ

Originally published October 03 2019, last updated April 13 2022

The post Easy Steps to get your Aadhaar XML Paperless e-KYC Done appeared first on SpringVerify Blog.

Video KYC is the only solution to the KYC compliance problem faced by fintech companies.

Video KYC (Know Your Customer) is set to replace the physical verification process. The prospect is still in a nascent stage and is under regulators’ purview, but it is said to be a cost-effective method to reduce the administrative cost of companies.

This step was initiated after the Reserve Bank of India (RBI) issued guidelines on KYC, restricting the use of eKYC by the private entities. As a result, these entities tied-up with the retailers or other companies to complete the KYC of the customers in-person. 

What is Video KYC?

A video KYC verification would enable a representative of a bank or any other financial institute to verify the identification of the customer by confirming the details of the documents submitted via video calls. 

Online Video KYC would be carried out through Google Duo for android users and Facetime for iOS users. During the call, a customer would need to show their original documents – proof of address and identity – to the company’s representative, after verifying his credentials. 

The footage would then be uploaded for final verification by the company’s team. Significant financial and mobile wallet companies have started setting up the infrastructure for this new KYC system. 

The benefits of using this Video KYC process:

• It reduces paperwork. It would also help eliminate the inefficiency of human errors. 
• It is cost-effective. The video KYC process reduces the loss of revenue due to delays in the process that starts from the time of customer application till verification.
• It saves a lot of time as it can be done anytime and anywhere. The physical presence of the customer is not mandatory. He/she needs to have access to a device with a camera and a good internet connection.
• It minimized the risk of identity frauds and submission of fake documents. All the information related to the customer can be stored securely with an online secure digital system. 
• It would also enable companies to use the same Video KYC for different products, such as opening saving accounts and loan applications.

There are some drawbacks to this technology too. The financial institutes will have to draw a strategy to combine video KYC with physical verifications to reach the population. They will also need to ensure that the video KYC remains compliant with the Data Protection Law that will be released by the Parliament. 

The Reserve Bank of India (RBI) is still exploring the vulnerabilities associated with this Artificial Intelligence-based process. When the Supreme Court put an end to the use of Aadhar-based eKYC, it was a big blow for the financial services sector. 

Our government understands the transformative power of technology, and hence, the Reserve Bank of India (RBI) is making ongoing efforts to figure out a solution with continuous communication with the Indian Bank Association (IBA) representatives. 

According to Buckminster Fuller,

“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”

Technological progress has made us advance toward a visionary India. A country where every sector is growing economically, there is a need to find solutions for dealing with sensitive information and data related to consumers and businesses. 

Video KYC solution is the most secure and efficient form of verification which would not involve any human interaction. It would be purely technology-driven and would help the fintech companies to reduce their cost and increase their efficiency.

Doing background verification yourself is complicated and time-consuming. Try our employee background verification and screening platform, Springverify – where employee verifications happen seamlessly and with minimal effort required from both the company and employee.

FAQ

What is a video KYC?

Video KYC removes the need for physical verification of customers. It is an online face to face verification in which customers verify themselves through a video call.

What are the benefits of video KYC?

• Video KYC facilitates worldwide customers without requiring them to visit the place or waiting in queues.
• It is a real time-saver.

What documents are required for video KYC?

The documents required for video KYC are PAN Card, Bank Statement, driving license, address proof.

Can I do video KYC with e-PAN?

For security reasons, Video KYC cannot be done through e-PAN. It requires a physical PAN card to complete the process.

[Published October 17, 2019 Last Updated May 20, 2022]

The post Video KYC – A revolution of customer verification appeared first on SpringVerify Blog.