Businesses in the 21st- century are going paperless and shifting to digital alternatives for creating, managing and storing legal documentation, contracts and other kinds of documents. Business organizations also use digital signatures or e-signature services for signing and verifying the paperwork.
Aadhar-based e-sign and KYC are two of the most valuable tools introduced by the Government of India that help a business in boosting the workflow by making document verification easier, simpler and faster. But what is Aadhar-based e-sign and KYC and how can we use them to boost workflow. Here we discuss everything that you need to know about these services.
What is Aadhar based e-sign?
Almost every Indian today holds an Aadhar card which is a unique identification number for every individual. About 99.7% of the Indian population has an Aadhar card which can be used for various purposes by linking it to different legal documentation.
Every Aadhar cardholder can use this unique identification card to digitally sign documents from anywhere at any time. An individual just needs a registered mobile number that has been linked to the Aadhar card. A one-time password is sent to this mobile number and you can easily verify a document remotely. This document can also be shared with multiple parties to get their Aadhar-based e-sign on the same document. Even if an individual does not have a mobile number, his/her biometrics linked to the Aadhar card can be used to digitally sign a document.
Aadhar-based e-sign enables individuals to verify a document and add digital signatures with ease remotely. But this tool has helped businesses in boosting the workflow. The Aadhar-based e-signature tool helps businesses in signing and verifying everyday transactions that involve getting a customer’s approval, verification, agreements or deeds. A business has to get hundreds of such documents signed every day and e-signature can help in achieving speed, reliability and accuracy.
What is e-KYC
KYC or Know Your Customer is a tool that is mandatory for every buyer to use to provide identification or verification to the business. Businesses use KYC services to verify the identity of customers so that the transactions between the customer and the business are more reliable and secure.
e-KYC is a digital alternative to KYC. The electronic KYC services were launched by the UIDAI in India which includes paperless KYC. Unlike the traditional or the old KYC tools, the digital KYC or e-KYC is paperless, instant and more secure. Traditional KYC takes more than two days to be completed while e-KYC can be done and set up within a few minutes.
While KYC is used for everyday transactions made between businesses and individuals, it is mandatory for every organization dealing in financial transactions or acting as financial intermediaries to get KYC of every customer for verification and identification so that there are no frauds, forgery or money laundering cases.
Digital services like e-KYC and Aadhar-based e-signatures are transforming the business world. More businesses are moving on to digital platforms for legal documentation and other services. Doqfy provides online legal document templates. There are more than a thousand online legal documents on the Doqfy platform that can be used by businesses, individuals and professionals to create and generate different kinds of legal documentation.