How to Use Aadhaar for eKYC – Digital Identity Verification Made Easy

How to Use Aadhaar for eKYC: Paperless Verification for Banks, Demat, and More

In today’s digital-first economy, electronic Know Your Customer (eKYC) has become the backbone of secure, real-time identity verification. Powered by Aadhaar authentication, eKYC eliminates paperwork and significantly reduces onboarding time across banking, investment, insurance, telecom, and government services.

In this guide, we explain what Aadhaar-based eKYC is, how it works, and where you can use it for seamless, paperless identity verification.

What Is eKYC?

eKYC (electronic Know Your Customer) is a digital method of verifying an individual’s identity using Aadhaar credentials. Instead of submitting physical documents, a user’s Aadhaar details are authenticated directly through the UIDAI database, ensuring fast and secure compliance

eKYC is:

• Legally valid under Indian IT laws

• Approved by SEBI, RBI, IRDAI, and TRAI

• Widely used in the finance, telecom, and insurance sectors

How Aadhaar Enables eKYC

Aadhaar-based eKYC uses the 12-digit Aadhaar number to retrieve identity and address information from UIDAI. There are two types of eKYC methods:

1. OTP-based eKYC

• OTP is sent to the Aadhaar-linked mobile number

• Ideal for basic account openings or limited transactions

2. Biometric-based eKYC

• Uses fingerprint or iris scan

• Required for high-value transactions or full-service accounts

Step-by-Step: How to Complete eKYC Using Aadhaar

Step 1: Choose the Service You’re Signing Up For

Examples: Demat account, insurance, bank account, mutual funds, telecom, etc.

Step 2: Select Aadhaar-Based eKYC Option

Most platforms offer “Use Aadhaar for eKYC” during onboarding.

Step 3: Enter Aadhaar Number

Ensure your Aadhaar is linked to a valid mobile number for OTP verification.

Step 4: Authenticate Using OTP or Biometric

Depending on the platform and service type, complete authentication.

Step 5: Auto-Fill of Verified Data

Your name, DOB, gender, address, and photo are pulled from UIDAI records.

Where You Can Use Aadhaar eKYC

• Opening bank accounts (RBI-approved)

• Applying for Demat and trading accounts (SEBI-compliant)

• Buying life and health insurance (IRDAI-compliant)

• Investing in mutual funds, NPS, and government bonds

• Activating SIM cards and telecom services

• Verifying identity for digital lending or credit cards

Advantages of Aadhaar-Based eKYC

• Fully paperless and contactless

• Real-time approval and verification

• No need for photocopies or notarization

• Reduces onboarding time from days to minutes

• Secure and tamper-proof—direct from UIDAI

Legal Validity and Data Privacy

As per UIDAI and IT Act provisions:

• eKYC data is encrypted and used only with user consent

• Only Registered KYC User Agencies (KUAs) can request eKYC

• Data is not stored permanently by service providers unless required by law

• Consent is logged and auditable

How One Solution Uses Aadhaar eKYC

At One Solution, we use Aadhaar-based eKYC to simplify client onboarding for:

• Demat and trading accounts

• Mutual fund investments

• Insurance policies

• Digital lending and portfolio creation

Our systems are integrated with UIDAI for OTP-based eKYC, and biometric options are available on request for in-person verification.

Final Thoughts

Aadhaar-based eKYC is one of India’s most powerful digital innovations, enabling millions to access essential services without paperwork, delay, or fraud. Whether you’re investing, insuring, or banking—Aadhaar eKYC ensures the process is fast, secure, and compliant.

For paperless, real-time account opening and financial onboarding, choose One Solution—trusted, verified, and 100% digital.