Highlight
- The survey reveals a significant cost reduction, bringing e-KYC costs down from ₹1,000 (US$12) to less than ₹6 (US$0.06).
- The survey recognizes Aadhaar as the critical identity layer within India Stack, enabling secure and efficient verification for financial transactions.
The Budget Session 2024 commenced today with the finance minister tabling the economic survey 2023-24 in the parliament. The Economic survey presents a report card on the economic growth and development in India, one of the reports shows that the use of the Aadhaar card-based electronic Know Your Customer (E-KYC) process for organizations reduces the cost from around Rs 1000 (12 USD) to less than Rs 6 (6 cents).
Economic Survey on E-KYC
The economic survey said, “Aadhaar has been instrumental in transforming India’s authentication ecosystem. It has facilitated the KYC process, reducing the cost of conducting e-KYC from USD 12 to 6 cents, extending banking to millions of Indians, and improving financial inclusion,”
The KYC is most important for financial institutions and businesses in verifying identity to get information like addresses, phone numbers, etc. of customers. This helps prove the person is real and better known for their identity information to prevent fraudulent activities.
There are many forms of documents used to perform this E-KYC but out of these Aadhaar is the most convenient and most commonly use document for E-KYC.
Also Read: Budget Session 2024 Commenced Today: Here are the Important Things You Need to Know
Digital Financial Inclusion (DFI)
The survey also shows that with the advances made in ‘Digital Financial Inclusion (DFI)’ by leveraging India Stack a framework that aims to accelerate India’s digital transformation and enhance financial inclusion. This has helped millions to accept payments, settle invoices, and transfer funds anywhere in the country with just a few screen taps.
The survey said that among the three critical components of India stack–identity, payment, and data governance—Aadhar has been important in the identity layer.
Conclusion
This is a report about the e-KYC from the Economic Survey, which was tabled in Parliament on the first day of the Budget Session 2024. The survey shows how Aadhaar has become the most convenient, cost-effective, and efficient way to perform e-KYC, and it is the most common.
