KYC (Know Your Customer) is a mandatory process for verifying a (how to do customer KYC in AEPS) customer’s identity before enabling financial transactions. In the Aadhaar Enabled Payment System (AEPS), KYC ensures secure and fraud-proof banking services for users. If you’re wondering how to do customer KYC in AEPS, this guide will walk you through the entire process, from document collection to verification.
What is AEPS and Why is KYC Important?
AEPS (Aadhaar Enabled Payment System) is a bank-led model that allows customers to perform basic banking transactions using their Aadhaar number and biometric authentication. Since AEPS deals with financial transactions, KYC compliance is crucial to prevent identity theft, money laundering, and fraud.
Types of KYC in AEPS
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Aadhaar-based KYC (e-KYC) – Uses biometric authentication.
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Offline KYC – Requires physical documents like Aadhaar, PAN, or Voter ID.
Now, let’s dive into the step-by-step process of completing KYC in AEPS.
Step-by-Step Process for Customer KYC in AEPS
1. Collect Customer Details
The first step in how to do customer KYC in AEPS is gathering necessary details:
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Aadhaar Number (Mandatory)
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Name as per Aadhaar
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Mobile Number (Linked with Aadhaar)
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Bank Account Details (IFSC Code & Account Number)
2. Biometric Authentication (e-KYC)
For Aadhaar-based KYC, follow these steps:
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The customer provides their Aadhaar number.
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A biometric scan (fingerprint/iris) is taken via an AEPS-enabled micro-ATM or banking correspondent device.
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The system verifies the details against UIDAI’s database.
✅ Successful authentication confirms the customer’s identity, completing the e-KYC process.
3. Document Verification (Offline KYC)
If biometric authentication fails, offline KYC is required. The customer must submit:
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Aadhaar Card (or e-Aadhaar)
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PAN Card (for high-value transactions)
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Proof of Address (Passport, Voter ID, Utility Bill)
The bank or BC agent verifies these documents manually before approving the KYC.
4. Bank Account Linking
Once KYC is complete, the customer’s Aadhaar must be linked to their bank account. This can be done via:
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Net Banking
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Bank Branch Visit
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ATM (using the “Aadhaar Linking” option)
5. AEPS Registration Confirmation
After successful KYC, the customer can start using AEPS services, including:
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Cash withdrawal
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Balance inquiry
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Fund transfers
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Mini statements
Common Challenges in AEPS KYC & Solutions
1. Biometric Authentication Failures
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Issue: Fingerprint mismatch due to poor scan quality.
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Solution: Clean the scanner, retry, or use iris scan as an alternative.
2. Aadhaar-Bank Account Not Linked
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Issue: Transactions fail if Aadhaar isn’t linked to the bank account.
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Solution: Visit the bank branch or use net banking to link Aadhaar.
3. Invalid/Expired Documents
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Issue: KYC rejection due to outdated documents.
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Solution: Ensure all submitted documents are valid and updated.
Benefits of AEPS KYC
✅ Secure Transactions – Reduces fraud risks.
✅ Financial Inclusion – Helps rural and unbanked populations access banking.
✅ Paperless Process – e-KYC is fast and eco-friendly.
Frequently Asked Questions (FAQs)
1. Is Aadhaar mandatory for AEPS KYC?
Yes, Aadhaar is compulsory for AEPS transactions since it relies on biometric authentication.
2. Can I do AEPS KYC online?
Yes, e-KYC via UIDAI’s portal is possible if biometric authentication is successful.
3. What if my fingerprints don’t work for AEPS KYC?
You can try an iris scan or opt for offline KYC with physical documents.
4. How long does AEPS KYC take?
e-KYC is instant, while offline KYC may take 24-48 hours for verification.
5. Is there a fee for AEPS KYC?
Most banks and BC agents offer free KYC, but some may charge a nominal fee.
Conclusion
Understanding how to do customer KYC in AEPS is essential for secure and hassle-free banking services. Whether using biometric e-KYC or offline document verification, the process ensures only legitimate users access AEPS transactions. By following the steps above, banking correspondents and customers can smoothly complete KYC and enjoy the benefits of Aadhaar-enabled payments.
Disclaimer
This post is for educational purposes only. If you have any concerns regarding this content, please visit our DMCA page for removal requests. Always verify the latest KYC guidelines from official banking or UIDAI sources before proceeding.