6 reasons why Aadhaar verification API is a game changer

According to the National Crime Records Bureau (NCRB), India witnessed 10,051 cases of business fraud, amounting to a loss of INR 45,704 crores. A major reason for such heavy damages in this industry is due to the time-consuming verification procedures, missing documents, and the absence of a general standard system of verification.

In India, Aadhaar plays an important role in verifying one’s identity. The 12-digit unique number assigned to every citizen of the country is used as a crucial document in the verification process by companies, financial institutions, and agencies during onboarding. 

The Aadhaar Verification API used for the onboarding process has changed the game for businesses and financial institutions. According to the data released by the Ministry of Electronics and Information and Technology, in September 2022, the total number of e-KYC transactions increased to 1297.93 crores. This indicates the growing trend of a new  Aadhaar verification system in the economy.

Aadhaar Verification API prevents fraud and identity theft, especially in financial institutions like banks, which are at high risk of scams.

In this blog, we will focus on the benefits of Aadhaar Verification API and how it guarantees a hassle-free, customer-friendly and effective verification process. 

What is the Aadhaar Verification API?

The Aadhaar Verification Application Programming Interface, or API, is a software interface used by businesses and financial institutions to validate the identity of their clients or customers through the assigned  unique Aadhaar number.

This technology allows these institutions to integrate authentication services into their applications and websites for an efficient and seamless onboarding experience.

The API receives an input in the form of the 12 digital Aadhaar numbers along with the OTP, based on which it derives and gathers the KYC details like date of birth, place of residence, full name, and photo of the concerned person.

It retrieves the data from the existing central database system of the Aadhaar server to provide the demographic information during the onboarding procedure.

There are different types of Aadhaar Verification API available based on the needs of the company and the information required to be submitted. eKYC, oKYC, and Aadhaar biometric authentication are a few of the APIs used for a paperless, efficient, and streamlined verification cycle.

What Are The Advantages Of The Aadhaar Verification API?

Aadhaar verification, integrated with API technology, is a crucial tool in standardizing the verification structure for businesses and banking institutions.

This process ensures there is a general procedure to judge a person’s identity and is not susceptible to any fraudulent practice.

Following are the reasons why it is beneficial for businesses and financial institutions  to shift from traditional Aadhaar verification system to the Aadhaar Verification API:

Ensures Security: By verifying the identity of the customer through the Aadhaar Verification API, businesses can ensure safe and secure dealings without the risk of fraud and scams. 

Information like age and name received by the authorized institutions enables to identify and prevents minors from accessing certain restricted services. 

The transmission of data to the authorized organization is encrypted and subjected to the consent of the client or the customer. This ensures the mutual security of both parties involved in the Aadhaar verification. 

Saves Cost: A vital part of the successful running of any institution is the strategic allocation of monetary resources to reach an efficient state of working. 

Using this kind of Aadhaar verification method is an affordable alternative to the existing traditional onboarding system. It reduces costs incurred on labor and paperwork required in the verification process. 

The Aadhaar Verification API  is an affordable alternative to the manual process of documentation and in-person verification.

Quick onboarding: This interface reduces the time required to complete the whole process. Even in remote locations, the API process allows a real-time Aadhaar verification of customers.

The automated instant verification process ensures a user-friendly experience.

Compliance with Regulations: To comply with the regulations established by the government, specific institutions like banks and telecom operators are required to mandatorily adopt the Aadhaar Verification API while onboarding customers.

This Aadhaar verification interface functions in adherence to the rules and regulations laid down by SEBI and RBI.

 It also follows the  KYC and data security guidelines established by the Government of India.

Consistency in the procedure: A standard Aadhaar verification API ensures a seamless process for all and enhances the overall customer experience. 

It creates a pleasant experience for the customer because of the minimal errors, the absence of manual procedures, and the trackability of the process.

Paperless Culture: The adoption of this new Aadhaar verification has allowed for a paperless verification culture. Earlier, there used to be a dependency on physical copies of passports, driver’s license, and Aadhaar card to verify an individual’s identity, which required multiple physical submissions to the company.  

Now, the documents can be submitted, accessed, and stored electronically.

What Are The Few Aadhaar Verification API Available For Aadhaar Verification?

Selecting the correct API tool for Aadhaar verification is important to ensure the desired seamless and efficient verification process. This can be done by understanding the flaws of the existing onboarding process, selecting the API provider, and integrating it with the existing application.

 Below are some of the prominent Aadhaar Verification API adopted by the business industry: 

eKYC: It stands for Electronically Know Your Customer. The verification of an individual is done electronically by retrieving the biometric and demographic information through the Aadhaar number and the OTP. It can be done  online. It is a convenient, sustainable, and eco-friendly method because it reduces paper usage. It is a more secure and efficient method of verification than the traditional KYC methods.oKYC: Offline Know Your Customer, or oKYC, refers to verifying a customer’s identity in an offline setup. There is no Internet requirement. The process is done by downloading an XML authentication file, which contains all the necessary information. DigiLocker: It is a one-stop digital storage vault for customers to store all the necessary documents and certificates related to education, property, finance, etc. It is an alternative to the physical storage system. The details required for Aadhaar verification can also be stored in this locker. Customers can easily save their documents here and can access them at their convenience. This makes the onboarding process easy, quick, and efficient.

Similar to DigiLocker, Veri5 Digital also provides Aadhaar Vault to those institutions who want to store the Aadhaar data. 

Final Thoughts

The Aadhaar Verification API changes the game of onboarding. It allows efficient, quick, and secure processes. It has also smoothed the transformation of traditional Aadhaar verification into a digitally infused, customer-friendly system.

Apart from serving the customer, it has pushed for a positive revolution in the business and banking industries. The paperless process has reduced paper usage and assured a sustainable and eco-friendly system.

Hence, businesses, financial institutions, and agencies need to integrate this technology of Aadhaar verification into their systems for a worthwhile onboarding process. 

Veri5Digital, India’s leading identity and digital solutions provider , provides Aadhar verification API to ensure an easy, hassle free and efficient onboarding.