The KYC process is vital for onboarding in different business environments. Organisations can render financial services to employees and customers only after identity verification. So, the KYC process plays a crucial role in delivering customer satisfaction. The e-KYC market is expected to grow at a CAGR of 21.55% from 2022 to 2030.
In the Union Budget 2023-2024, the government has recognised Permanent Account Number (PAN) as the principal identity for business organisations. PAN cards along with Aadhar cards are used in the KYC process for verification. PAN cards are more relevant for financial services verification as they have the specimen signature.
PAN verification is required to prevent fraudulent financial transactions. PAN verification is vital for buyer-seller interactions to improve the transparency of transactions. The government has mandated PAN verification for anti-money laundering (AML) purposes.
As of 2022, more than 43.34 crore PAN cards are linked with Aadhar. It enables businesses to use PAN cards to enter the National Single Window System (NSWS). Financial institutions must complete PAN verification to onboard individual and corporate customers. PAN verification is also essential for employee verification for complete payroll processing. For financial institutions, KYC verification constitutes 40% of the onboarding process. With the rise of e-KYC, organisations must look for automation solutions to verify customers digitally.
Offline and online PAN verification is required in the following cases:
For business transactions and corporate customers, PAN verification is essential. As PAN cards are automatically linked to Aadhar cards, Aadhar-based verification also involves PAN verification.
There are 3 main types of PAN card verification:
The KYC process is a key step to complete customer due diligence. The union government encourages the fintech sector to use risk-based analysis of customers and verifying identity is a vital step to assess risks. Integrating verification APIs for identity verification reduces KYC drop-offs and increases customer satisfaction while safeguarding against fraud.
Tartan is a full-stack verification API platform that revolutionises data verification processes. Tartan uses real-time APIs for identity verification using PAN cards. It takes only a few seconds for Tartan APIs to verify data and ensures easy onboarding of individual and corporate customers. Tartan API verification assures identity accuracy and reduces onboarding costs to enable seamless financial services.
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