Quick answer: Aadhaar e-KYC lets a bank, telecom operator or other permitted service confirm your identity electronically: you authenticate with an OTP or biometrics, and the Unique Identification Authority of India (UIDAI) sends the provider a digitally signed copy of your name, address, date of birth, gender and photo. Since the 2018 Supreme Court judgment and the 2019 amendment, Aadhaar e-KYC is voluntary for bank accounts and mobile connections, and no one can be refused these services for not using Aadhaar. You can share less data by using a Virtual ID, a masked e-Aadhaar or offline verification.
What is KYC?
KYC means “Know Your Customer”. Banks, insurers, mutual funds, payment companies and telecom operators must verify who their customers are before providing services. For banks and other entities it regulates, the Reserve Bank of India (RBI) sets the KYC rules, and the Prevention of Money-laundering Act, 2002 sets the legal duty.
A KYC process usually collects:
- Personal details: name, date of birth, and often a parent’s or spouse’s name.
- Contact details: address, mobile number and email.
- Proof of identity and address: an officially valid document, or an electronic alternative such as e-KYC.
Documents accepted for bank KYC
Under the RBI’s KYC directions, the officially valid documents (OVDs) for individuals are:
- proof of possession of an Aadhaar number;
- passport;
- driving licence;
- voter identity card issued by the Election Commission of India;
- job card issued under NREGA, signed by a state government officer;
- a letter from the National Population Register showing name and address.
If your OVD does not show your current address, the RBI allows certain “deemed” documents for address, such as a utility bill not more than two months old, a property or municipal tax receipt, or a pension payment order, provided you submit an updated OVD within the time the RBI allows. The rules have been revised over the years, so ask your bank for its current list.
An earlier version of this article listed a rent agreement and a gazetted officer’s letter as general ID proofs, and a bank or post office passbook as address proof. These are not on the RBI’s main OVD list, so we have removed them.
How Aadhaar e-KYC works
- The provider asks for your consent and explains what data will be used and why.
- You give your 12-digit Aadhaar number or your 16-digit Virtual ID.
- You authenticate with an OTP sent to your Aadhaar-registered mobile, or with a fingerprint, iris or face scan on the provider’s device.
- UIDAI sends the provider a digitally signed e-KYC response: name, address, date of birth, gender and photograph.
- The provider uses this verified data to open your account or activate your service.
According to UIDAI, e-KYC is done only with OTP and/or biometric authentication. Your fingerprints and iris images are never sent to the provider.
The original article described e-KYC as entering your Aadhaar number on a bank’s website “to link it to your bank account”. That mixes up two different things: e-KYC verifies your identity, while bank seeding links your Aadhaar to an account for subsidy payments.
Where e-KYC is voluntary and where Aadhaar can be required
Before 2018
Between 2017 and 2018, the government had made Aadhaar linking compulsory for bank accounts and re-verification of mobile numbers, and many private companies used Aadhaar e-KYC under Section 57 of the Aadhaar Act. This article was first written during that period.
The 2018 judgment
On 26 September 2018, the Supreme Court in Justice K.S. Puttaswamy (Retd.) v. Union of India struck down Section 57, which had let private companies use Aadhaar authentication on the strength of a contract. It also struck down compulsory Aadhaar linking for bank accounts and SIM cards. Our explainer on the Aadhaar Act and the 2018 judgment has the full background.
The 2019 amendment and today
The Aadhaar and Other Laws (Amendment) Act, 2019, in force from 24 July 2019, restored e-KYC as a voluntary option:
- Banks: a banking company may verify customers by Aadhaar authentication, offline verification, a passport or another notified document. Other financial entities can use Aadhaar authentication only if the central government permits them after consulting UIDAI and their regulator.
- Telecom: the 2019 amendment allowed Aadhaar authentication as one of several options, and barred operators from storing your Aadhaar number or biometrics. Mobile identification now falls under the Telecommunications (User Identification) Rules, 2026, which provide an Aadhaar e-KYC route and a separate digital KYC route for people who do not use Aadhaar. See our guide to SIM KYC with your mobile operator.
- Everyone: the choice of method is yours, and no one can be denied a service for not having Aadhaar.
Aadhaar can still be required for government subsidies and benefits under Section 7 of the Aadhaar Act and for PAN and income tax returns. If you receive a benefit through Direct Benefit Transfer (DBT), the bank account it is paid into normally needs to be Aadhaar-seeded.
Privacy safeguards you can use
Virtual ID (VID)
A VID is a temporary, revocable 16-digit number mapped to your Aadhaar. Your Aadhaar number cannot be worked out from it. According to UIDAI, only you can generate a VID, on the myAadhaar portal (myaadhaar.uidai.gov.in), in the Aadhaar app or by sending an SMS to 1947 from your registered mobile. Only one VID is active at a time, and a new one can be generated after one calendar day.
Masked Aadhaar
A masked e-Aadhaar shows only the last four digits of your Aadhaar number. Use it when you need to show proof of Aadhaar but the other party does not need the full number. For non-DBT customers, the RBI’s rules also require the Aadhaar number to be blacked out on copies submitted for KYC. Our guide to e-Aadhaar shows how to download the masked version.
Offline verification
Instead of online e-KYC, you can share a digitally signed offline e-KYC file, scan your Aadhaar QR code, or share selected details from the Aadhaar app. The verifier cannot store your Aadhaar number or biometrics. Read more in our article on paperless and offline Aadhaar verification.
Lock and monitor
Lock your biometrics on myAadhaar or the Aadhaar app when you are not using them, and check your authentication history to see which agencies used your Aadhaar. Our guide to Aadhaar authentication explains both.
Benefits of e-KYC
- Fast: accounts and connections can be activated within minutes.
- No photocopies: you do not hand over self-attested copies that could be misused.
- Harder to forge: the provider receives data signed by UIDAI, not a document that could be altered.
- Consent-based: UIDAI shares e-KYC data only after you authenticate and consent.
Frequently asked questions
Is Aadhaar e-KYC mandatory to open a bank account?
No. A bank can offer Aadhaar e-KYC, but it must also accept other officially valid documents such as a passport, driving licence or voter ID. Aadhaar is needed only if you want government subsidies credited to that account.
Can I complete mutual fund or investment KYC with Aadhaar?
Many investment platforms offer Aadhaar-based KYC, but only entities permitted under the law can use Aadhaar authentication, and the steps differ by platform. An earlier version of this article said the service was for investors who do not have a valid Aadhaar number; that was wrong, because e-KYC needs a working Aadhaar and registered mobile. Check with the platform or its registrar for its current process.
What details does UIDAI share in e-KYC?
Your name, address, date of birth, gender and photograph, in a digitally signed form. Fingerprints and iris data are never shared.
What if my mobile number is not linked to Aadhaar?
You cannot use OTP-based e-KYC. You can use biometric e-KYC at a branch or store, use another accepted document, or update your mobile number at an Aadhaar centre or through the Aadhaar app.
This guide was checked in October 2026 against UIDAI’s pages on authentication and the Virtual ID, the Aadhaar and Other Laws (Amendment) Act, 2019 as published in the Gazette of India, the RBI’s KYC directions and the Department of Telecommunications’ 2026 user identification instructions. KYC rules change often, so confirm the current process with your bank or operator before you apply.
