Navigating India’s Complex KYC Landscape

With an estimated 900 million internet users by 2025, India represents a significant, but complex, market opportunity for global organizations.

Intelligent identity verification and Know Your Customer (KYC) measures can help businesses navigate the complexities of the market to cost-effectively onboard customers, ensure compliance and control fraud.

India KYC for a Person

Regulated entities in India must perform KYC checks on people before they open accounts. The Reserve Bank of India, the Securities and Exchange Board of India and other regulatory authorities have established identity verification guidelines to assess customer risk and monitor transactions.

The customer identification process, for instance, calls for proof of identity and address. Accepted documents include passports, driver’s licenses, Aadhaar number and a voter’s identity card.

The most widely accepted ID in India is Aadhaar. The electronic version of Aadhaar enables people to verify by providing their 12-digit number and consent for a service provider to use their data.

The provider sends the Aadhaar number to the Unique Identification Authority of India, which responds with demographic information such as name, address and phone number to verify the person’s identity.

The permanent account number (PAN) is another popular identity form. It’s a unique, 10-digit alphanumeric code issued by the Income Tax Department to Indian taxpayers who are 18 or older. 

India KYC for a Business

Regulated entities in India also must perform KYC on businesses before they open accounts. That includes identifying and verifying:

• Certificate of incorporation
• Memorandum and articles of association
• Company PAN
• Authorization to transact on the company’s behalf
• Beneficial owners
• Senior management
• Registered office

The documentation can be in electronic form.

In India, a beneficial owner is someone who owns 10 percent of the shares, capital or profits of a company.  Regulated entities must perform KYC for every beneficial owner.

Navigating Verification and Compliance in India

Trulioo state-of-the-art technology and local expertise can help organizations navigate the complexities of India’s regulatory landscape while streamlining person and business verification. 

The Trulioo suite of in-house verification capabilities covers the world and eliminates the need for multiple point solutions. Organizations can blend business and person verification to gain deep insights into entities and their beneficial owners. 

Companies can combine data and document verification to ensure their onboarding processes align with a customer’s risk level. Trulioo onboarding workflows automatically route users to the verification service that best fits any scenario as organizations expand across borders, face evolving fraud threats and adapt to shifting regulations.

No matter an organization’s verification needs, Trulioo stands as the trusted partner for any market anywhere in the world.