Reflecting on a Remarkable Year: 2023 in Review

As we stand at the cusp of a new year, we do not want to miss a moment to reflect on the incredible year that 2023 was. It was a year filled with milestones, new products, and expanding horizons.

Let’s look back at our achievements and learnings from 2023

Celebrating Milestones!

#1 Product Innovation

AuthBridge has remained at the forefront of technological innovation, and this year has been no exception. Our flagship product, iBRIDGE, underwent significant enhancements to revolutionize the candidate hiring and onboarding experience. The new and improved iBRIDGE boasts an advanced reporting module, end-to-end visibility, a streamlined user interface, and pre-offer checks, among other capabilities. These enhancements underscore our commitment to providing seamless, efficient, secure employee verification and onboarding solutions.

In addition to iBRIDGE, advancements to OnboardX marked a significant milestone. This platform digitally transforms the end-to-end third-party onboarding and due diligence process, catering to over 50 industries. With ONBOARDX, AuthBridge is empowering organizations to navigate the complexities of third-party onboarding and risk management easily, ensuring compliance and efficiency in a rapidly evolving business landscape.

Our overarching product improvements reflect a tech-first approach while keeping our customers at the center of everything we do. The result is a suite of solutions that not only meet industry standards but also exceed the expectations of our diverse clientele.

#2 Setting the Gold Standard: 170+ APIs for Digital Check

AuthBridge continues to set the gold standard in authentication and onboarding services with our extensive portfolio of digital check APIs. This year, we expanded our offerings to include more than 170 API-based checks. These checks enable rapid and accurate verification, ensuring businesses can make informed decisions within seconds.

#3 1500+ Strong Family

A company is only as strong as its team, and AuthBridge became even stronger in 2023. The strategic hiring of the right talent has played a pivotal role in strengthening our mission and vision. Our family expanded to a 1500+ strong squad, embodying growth, boldness, and commitment to excellence. It’s not just numbers; it’s a force driving our success. (want to join the tribe?)

#4 Brand Revamp

In line with our commitment to innovation, AuthBridge transformed its brand identity. We proudly launched a new logo representing our evolution and commitment to staying ahead in the authentication and verification space. Our revamped website reflects our dedication to providing our clients and partners with an intuitive and informative online experience.

#5 Building a Community: 80K+ LinkedIn Followers

Our journey is not just about our internal achievements but also the connections we build with our community. We were fortunate to have a strong family of 80,000+ followers on LinkedIn, a platform where we share insights, industry trends, and updates. To each of you, our rockstars, thank you for being an integral part of our journey!

#6 Celebrating 18 Years of Excellence

2023 marked the 18th anniversary of AuthBridge. This journey is a testament to resilience, growth, and commitment to serve the best daily. Over the years, we have evolved, adapted, and continued to set new standards in the authentication and verification industry. Here’s to more years of innovation and excellence!

What's stored in 2024?

As we bid farewell to 2023, we are filled with gratitude and excitement.

As we step into 2024, AuthBridge is poised to embrace the challenges and opportunities that the evolving landscape of authentication and verification presents. New-age technologies, industry-wise trends, and a rapidly changing digital environment will shape our focus for the upcoming year.

AuthBridge remains committed to being a trailblazer in the industry, continuously innovating to meet the evolving needs of our clients. We are excited about the possibilities and look forward to another year of setting new benchmarks, delivering exceptional value, and reinforcing our position as a leader in authentication and verification services.

Thank you for being part of our journey, and here’s to a future marked by innovation, growth, and continued success.

What-is-identity-verification-and-how-is-it-done-blog-image1

What is identity verification, and how is it done?

Identity verification is paramount in ensuring risk mitigation and reliability in the long term. Given the rise in fraudulent activities and increasing emphasis on data security, businesses must choose robust identity verification solutions to assess individual/business 360 degree while supporting consent-based data management, access control, and data minimisation, ensuring compliance with stringent data protection policies.


What are the benefits of identity verification?

Identity verification is a process to confirm that an individual’s claimed identity matches their identity. The reason why identity verification is conducted is due to the following reasons:

  • Enhanced Security

Identity verification ensures only authorised individuals can access systems, data, or physical locations. It minimises risks associated with identity theft, account takeovers, and other fraudulent activities, safeguarding individuals and organisations.


  • Compliance and Regulations

Many industries, such as banking, finance and healthcare, have specific requirements for identity verification to meet Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. Robust identity verification solutions enable comprehensive screening of individuals and business partners, ensuring compliance with these regulatory mandates and shielding businesses from potential legal consequences and fines for non-compliance.


  • Data Protection

In today’s environment, stringent data security policies are a top priority. It is a legal and ethical imperative to select robust identity solutions that align with evolving regulations. Identity verification solutions designed for consent-based data management, access control, data encryption/masking, and data minimisation ensure that only necessary information is verified, reducing the exposure of unnecessary data.


  • Streamless onboarding, Faster TAT

Identity verification can simplify user onboarding processes and reduce administrative overhead. Biometric, liveness detection, OCR, and verification APIs for different use cases can make end-to-end onboarding more convenient. It is also helpful in offering customisable experiences and services based on user preferences and behaviour.


  • Trust and Reputation

Users and customers gain a heightened sense of security when they know their identities are being rigorously verified. This fosters trust that their personal information is protected, reducing the risk of data breaches and strengthening an organisation’s reputation.


While identity verification offers many benefits, it’s essential to balance security and user convenience to avoid creating barriers for legitimate users. Additionally, the level of verification required may vary depending on the specific use case and the associated risks.


This is where identity verification APIs play a crucial role in verifying different aspects of the individual, be it identity, age, address, criminal records, etc. The primary role of identity verification APIs is to confirm the identity of individuals, providing an extra layer of security and trust for businesses and customers and expediting onboarding and transaction processes in the fast-paced digital world.


What are the Benefits of Identity Verification APIs?

Real-time Verification: ID verification API enables near real-time verification of individuals and businesses to prevent impersonation or identity theft. 

  • Faster Onboarding TAT: Identity verification API facilitates fast and accurate identity validation by cross-checking sourced and government databases for a seamless onboarding experience. 
  • High Accuracy: Depending on the quality and the size of the proprietary database, API can verify the information quickly and in a secure environment. 

What are the Different Types of Identity Verification

Identity verification can be different based on the entity to be verified. Broadly, there are two ways to conduct identity verification:

  • Individual Identity Verification: ID verification APIs are a fast and accurate way for the verification of the identity of an individual based on their NID documents such as Aadhar card, PAN card, Voter ID card, Driving license and Passport. One of the biggest benefits of the verification API is the ability to verify individuals in bulk rather than doing them individually.
  • Business Verification: Business verification API helps with establishing the identity of a business, such as distributors, vendors, third parties, LLP, and private limited companies. Commonly used business verification documents are GST number, CIN/DIN, and Udyam Aadhaar Verification.


Types of Individual Identity Verification

  • PAN Card Verification: The Permanent Account Number (PAN) card is one of the most important documents that helps prevent tax evasion and illicit fund transfers by individuals and entities as it links all financial transactions made by a particular individual or entity. The Securities and Exchange Board of India (SEBI) has made it mandatory for investors to provide their PAN details for all business transactions. The PAN card verification process involves matching the card details provided by the user with the database maintained by the Income Tax Department and ensuring that the identity is authentic and not fabricated. PAN verification is crucial for companies to comply with anti-money laundering (AML) regulations and identify suspicious or fraudulent activities. Businesses can leverage PAN Card verification API to fastrack the verification process and ensure whoever they are onboarding or associating their business with is reliable.

  • Aadhaar Card Verification: It is conducted as a part of the KYC to prevent identity fraud and filter out duplicates, fake, and ghost identities. Aadhaar verification is required in various sectors for identity verification, including banking, telecom, government services, e-commerce, logistics, FMCG, etc., when onboarding white-collar or blue-collar employees, third parties, or customers. With Aadhaar Card Verification APIs, businesses can ease their compliance journey by validating the Aadhaar in bulk, eliminating duplicate and fake identities, and ensuring speed and scalability to the onboarding process. 

Types of Aadhaar Verification APIs

  1. Aadhaar Paperless: Fetch POI and POA data with Aadhaar Virtual ID (VID) Number
  2. Aadhaar Paperless Offline eKYC: Upload Aadhaar Number XML file to fetch e-Aadhaar details easily
  3. Aadhaar Verification via Digilocker: Conduct Aadhaar e-KYC online by fetching e-Adhaar based on Digilocker data
  4. Aadhaar QR Search: Pull Aadhaar POA and POI data using the Aadhaar QR code

  • Voter ID Verification: The Voter ID Card, also known as the Elector’s Photo Identity Card (EPIC), is issued by the Election Commission of India to adult citizens above the age of 18 years. Voter ID often verifies individuals’ identities, ages, and addresses. Voter ID Card Verification API extracts personal information provided in the ID card, such as name, father’s name, address, DoB, and EPIC number. It verifies against the election commissions’ government database. 

  • Address Verification: Address verification helps verify an individual’s claim of living at a particular address. These verifications are particularly needed by companies hiring employees, banks onboarding a new customer, or universities granting scholarships. Address Verification API uses PoA documents such as Voter ID Cards, utility bills (electricity, gas, water, etc.) or rent agreements signed by the landlord to fetch the details and verify against government databases to verify an individual’s identity. 

  • UPI Verification: The Unified Payment Interface (UPI) requires every bank account holder who registers for UPI to receive a unique virtual payment address (VPA). The National Payment Corporation Of India (NPCI) introduced this system to encourage digital payments. The UPI Verification API is used to verify the VPA of the user. Valid UPI ID (or VPA) instantly gives you the bank account holder’s name as registered in the bank. Accessing the updated data allows comparing the identity (KYC) details provided in the application form against the beneficiary name returned from the UPI API to validate the customers.

  • Driving License Verification: Fake or duplicate driving licenses can substantially increase identity fraud, causing an imminent threat to a business’s reputation and financial assets – especially in industries such as shared mobility, delivery and logistics, transportation, and much more. Identifying spurious and falsified driving licenses with the naked eye is difficult. Driving license verification not only helps validate that the individual is authorised to drive on public roads legally but is also used as proof of identity, age, and address in non-driving contexts. It is equivalent to other personal identification documents like Aadhaar cards, passports, PANs, Voter IDs, etc. 

  • Passport Verification: Conducting passport verification is most beneficial for companies conducting business with overseas customers or those partnering with cross-border businesses. Passport verification API uses the OCR technology to extract personal details like name, DoB, address, and the individual’s photo to verify against the government database. Doing this assures the companies that the individual holds a legitimate passport.

  • Bank Account Verification: Bank account verification is done to check the authenticity of the user and account status (active or dormant account) using the bank account number and the IFSC code. Bank Account Verification API uses the penny drop verification method to authenticate the beneficiary. The process calls for a transaction of Rs.1 to the user’s account and verifies the account information in real-time to ensure no transaction failures or reversals and to prevent identity fraud and thefts.


Types of Business Verification

Like individual verifications, business verification validates the business identification documents to establish legitimacy.

  • GSTIN Verification: GST is a unique 15-digit identification number assigned to every taxpayer (primarily dealer, supplier or business entity) registered under the GST regime. GST verification API enables KYB (know your business) verification by cross-checking the business’s GST number against the pre-validated database to verify the legitimacy of a business.

  • Udyam Aadhaar Verification: With Udyam Aadhaar verification API, one can validate the enterprise name, type, commencement date, full address & universal account number (UAN). Running this verification check confirms that small or medium business or enterprise is legal and operational via their Udyam Registration, also known as an MSME Registration issued by the Ministry of MSMEs.

  • MCA Verification: The Ministry of Corporate Affairs (MCA) maintains data related to companies/LLPs, easily accessed by regulatory authorities, directors, partners, professionals, companies, LLPs, and the public. MCA verification API validates company ID, company name, type & category, registration number, address, date of incorporation, and director details with just an input of the Company Identification Number (CIN) or Director Identification Number (DIN).

To explore all checks, click here.


What is the Process of Identity Verification via API

Step 1: Request initiation for verification

Step 2: Sending the request to start the identity verification process

Step 3: Entering ID proof details relevant to the individual or business

Step 4: Uploading the documents in real-time

Step 5: OCR-based data extraction 

Step 6: Instant verification check via API against various source databases to validate details 

Step 7: Based on the data received from databases, verification is completed, and the missing data is highlighted


How Identity Verification is Useful Across Industries

In the digital era, various industries have embraced identity verification using API integrations to have streamlined processes and improved customer experiences. For instance, the BFSI industry, being a highly regulated sector, needs robust and sophisticated identity verification APIs to streamline customer onboarding and KYC – making services more accessible. In insurance, agent and policyholder verification enables the insurers with risk assessment by extracting, verifying and validating any document/photo at any stage of the policy purchase or underwriting process.

E-commerce and retail benefit from identity verification to prevent shipping frauds, payment card frauds, account takeovers, and phishing attacks. Whether it is customer verification, seller verification or delivery partner verification, integrating identity verification API goes a long way in the shopping experience, ensuring AML compliance and improving digital identity management for both online and brick-and-mortar stores.

Real-money gaming platforms have often been the target of identity and financial fraud due to the large volume of transactions. Verification of a player’s PAN, Aadhaar, and address is a must to authenticate the identity, age, and location to adhere to stringent regulations and compliance mandates.

The travel and hospitality industry relies heavily on person-to-person interaction, trust and safety. Hence, identity verification of guests and employees, encompassing restaurant managers, kitchen staff, vendors, travel agents, contractors, and franchise partners, is indispensable to building a safe ecosystem for everyone. 

The IT sector relies heavily on API-based verification for vendor onboarding and recruitment agencies to expedite background checks. 


Conclusion 

In a rapidly evolving digital landscape, identity verification has become the linchpin across diverse industries, whether BFSI, e-commerce, manufacturing, gaming, or hospitality. It’s the foundation for secure, efficient operations and enhanced customer trust. At AuthBridge, we offer a comprehensive suite of identity verification APIs tailored to different sectors and needs. 

Get Started Today!

Connect with our solution experts today at sales@authbridge.com, and let us guide you towards a safer, more streamlined future. Get started today by booking a free consultation, and let us understand your unique requirements in depth.

Background Verification: Ensuring a Secure Workforce with the Right Hiring/Onboarding

Finding the right talent is a herculean task in today’s fast-paced and competitive market. Hours of talent hunting, numerous interviews, and extensive resources invested in the hiring and onboarding process make it imperative to ensure that the individuals you select are a perfect fit for your organisation/business.

Considering the number of identity, criminal, fake degree, and impersonation frauds surfacing daily, conducting a 360-degree background verification becomes more critical to cover every aspect of an individual’s past track record and current personality or assess the person’s attributes.

In this blog, we’ll delve into employee screening background verification, exploring its various facets and why it’s indispensable for businesses of all sizes and industries.

White Collar Verification

Imagine finding that ideal candidate, only to discover their hidden criminal history. This scenario can spell disaster for your organization’s reputation and operations. This is where white-collar verification ensures that your employees have the highest integrity.

White Collar Employee Onboarding & Verification Challenges

  • Conducting extensive background checks, including education, professional, criminal, reference checks, etc.
  • Handling sensitive personal and professional data to protect employees’ information.
  • Meeting strict regulatory compliance in certain industries, such as finance and healthcare, demands careful adherence to compliance standards.
  • Ensuring that your background verification partner provides accurate data to identify thefts and other associated frauds.

A robust screening process for white-collar candidates can help you with a detailed evaluation of the candidate’s criminal history, employment history, educational background, and more. You can onboard genuine candidates in bulk without compromising on quality and security.

Learn about our White Collar Screening Solution

Blue Collar Verification

Blue-collar workers are the backbone of many industries, and their reliability and trustworthiness are just as vital as those of white-collar employees. Blue-collar workers typically perform manual labour and tasks that require physical skills, often in industrial, manufacturing, e-commerce, construction, or on-field roles.

Blue Collar Employee Onboarding & Verification Challenges

  • Verifying qualifications, certifications, and licenses for blue-collar roles, especially when it comes to bulk onboarding
  • Some blue-collar employees are not tech-savvy, making it a must to have a seamless onboarding and verification solution.
  • Validating if they are adequately trained to support their job functions and do not have a history of workplace misconduct to prevent major reputational risks.
  • Meeting compliance with industry-specific regulations and standards

Blue-collar verification includes checking criminal records, previous employment, and verifying technical qualifications (wherever required). Deploying a robust platform for blue-collar screening can help identify red flags, such as a history of workplace misconduct, reducing the risk of workplace issues or disputes. Businesses can make safe hiring decisions, ensure faster onboarding at scale, and be at peace of mind knowing that their workforce comprises qualified and trustworthy employees.

Learn about our Blue Collar Screening Solution

Leadership Due Diligence

Leadership positions in any organization hold high trust and responsibility. Imagine the consequences of hiring an incompetent or ill-intended manager that can bring an organisation into disrepute and put the brand’s reputation in dire straits. Not only reputational risks but a wrong hire in the leadership position can also pose a significant operational risk and hinder the efficiency and productivity of the organisation.

Leadership Due Diligence Challenges

  • Assessing whether a candidate will fit into the organization’s culture or not.
  • Lack of robust assessment tools for evaluating leadership potential. Traditional techniques and reference checks may not promise a 360-degree evaluation of leadership abilities.
  • The leadership due diligence process can be time-consuming. Organizations may be tempted to expedite the process, leading to oversight or incomplete evaluations.
  • Conducting leadership due diligence in a legal and ethical manner. Mishandling sensitive information or discriminatory practices can lead to legal and reputational issues.
  • Conducting global database checks to identify any international records or red flags associated with the candidate.

Leadership due diligence should be seen as a long-term investment. Organizations should consider implementing a more comprehensive evaluation framework for leadership assessments, peer feedback, and 360-degree reviews to overcome the challenges. With this, organisations can be assured that the new hires are well-qualified and have the necessary skills, qualifications, and personality attributes to lead a team effectively and drive key business outcomes.

Learn about our Leadership Due Diligence

Moonlighting

Employee moonlighting and its concerns, i.e. data privacy, confidentiality breaches, productivity loss, etc., came to the fore, especially after the COVID-19 pandemic when employees started working remotely. Many adopted a hybrid model, and organisations worldwide also embraced this shift. Moonlighting cases put a question mark on the ethical obligations and commitment of the employees. Moreover, it can lead to burnout and negatively impact an employee’s health and well-being – causing poor performance and absenteeism. This makes moonlighting checks imperative for employers in managing their workforce effectively.

Moonlighting/Duel Employment Verification Challenges

  • Conflict of interest as an employee may work for a competitor or engage in freelance work that competes with their primary company’s business.
  • Lack of transparency as employees fear disclosing their additional employment. Evaluating financial data, i.e. EPFO check, UAN check, and Form 26AS checks at periodic intervals, can help track moonlighting and enforce restrictions.
  • Verifying moonlighting can be time and resource-intensive without a reliable BGV partner as it involves background checks, monitoring employee behaviour, and investigating potential violations.
  • Employment laws and privacy regulations can vary by jurisdiction. Being cautious not to infringe on an employee’s rights or invade their privacy when verifying moonlighting is challenging.
  • Employers may struggle to effectively communicate their policies on moonlighting and the potential consequences of violations.

Implementing moonlighting checks is a strategic move to monitor whether their candidates are engaged in multiple employments and assert a degree of control. Consistent moonlighting checks can help organizations identify moonlighting instances among their staff and proactively address the associated risks.

Learn about our Dual employment/Moonlighting checks

Gig Worker Verification

The gig economy is rising, and many organizations rely on gig workers for flexibility and scalability.  Gig workers play increasingly important roles in various industries, contributing to the evolution of the modern workforce.

Gig Worker Verification and Onboarding Challenges:

  • Handling personal and sensitive data during the identity verification process
  • Managing bulk verification and onboarding of gig workers, especially during peak periods
  • Ensuring consistent verification process across different regions/markets due to varying regulations
  • Verifying gig workers’ qualifications and backgrounds, working remotely or in various locations
  • Preventing fraudulent gig worker applications, identity frauds, or misrepresentations. A robust verification framework encompassing an array of necessary checks, i.e. driving license verification, RC, NID, face match, police verification, etc., should be kept in place.
  • Balancing the costs of comprehensive verification and onboarding processes
  • Plugging gig worker verification services into the existing onboarding journey (whether through an app, custom portal or any other platform) is the key. A right background verification service provider can do this seamlessly.
  • Staying compliant with evolving labour laws and regulations

Verifying the credentials and backgrounds of gig workers is crucial to maintaining a secure and trustworthy workforce. A robust onboarding solution will help you authenticate your gig workers in record time and uncover fake/forgery documents, identity thefts, and criminal history to mitigate reputational risks.

Learn more about Gig Worker Verification

Key Checks for Employee Background Verification

How does AuthBridge’s background verification platform take your employee onboarding a notch higher?

  • Industry’s Fastest Turnaround Time: Fast and accurate employee screening process to ensure comprehensive verification outcomes within record time. Our expansive proprietary database and advanced analytics help businesses expedite onboarding and provide accurate and reliable verification results you can trust.

  • Limitless Scalability: Effortlessly handle verifications at any scale, no matter how large or complex your hiring and screening needs may be.

  • Paperless and Contactless Onboarding: Technologies like optical character recognition (OCR), image recognition, face match, document classification, and digital signatures will save your business time and cost-effectively.
  • Customisable and integrable with any HRMS: Plug in or out any component of the background verification process as per your requirement. Our employee onboarding products can be used as stand-alone web platforms or integrated into your existing HRMS/onboarding tool via APIs.
  • Built-in regulatory compliance and data privacy : Our verification and onboarding products adhere to General Data Protection Regulation (GDPR) requirements and global encryption standards so that your organisation stays compliant with ever-changing regulations while scaling up.

Want to know more about our employee onboarding and verification products? Contact us today!

KYC Compliance – How it Safeguards Businesses and Customers Alike

In an era defined by rapid digital transformation, businesses across various sectors are leveraging technology to streamline operations and enhance customer experiences. However, amidst these advancements, the need to maintain stringent security measures remains paramount. This is where Digital KYC (Know Your Customer) compliance steps in as a robust solution, safeguarding both businesses and customers alike.

Safeguarding Businesses through Digital KYC Compliance

  • Risk Mitigation and Fraud Prevention
    Digital KYC compliance serves as a frontline defence against fraudulent activities. By verifying the identities of customers before onboarding, businesses can identify and deter potential fraudsters, protecting their assets and reputation.
  • Regulatory Adherence
    In an increasingly interconnected world, regulatory bodies are imposing stricter guidelines to combat money laundering, terrorism financing, and identity theft. Digital KYC compliance ensures that businesses remain in accordance with these regulations, avoiding costly penalties and legal complications.
  • Operational Efficiency
    Traditional KYC procedures involve time-consuming manual processes, leading to delays in customer onboarding. Digital KYC streamlines this process through automation, reducing the turnaround time and enabling businesses to focus on core activities.
  • Enhanced Customer Insights
    Digital KYC tools provide businesses with a comprehensive view of their customers. This data can be leveraged to personalise offerings, tailor marketing strategies, and improve overall customer experience, leading to increased customer loyalty and retention.

Ensuring Customer Trust through Digital KYC Compliance

  • Data Security and Privacy
    Customers are increasingly concerned about the safety of their personal information. Digital KYC compliance assures them that their data is being handled securely, fostering trust in the business and its commitment to safeguarding sensitive information.
  • Seamless Onboarding
    Traditional KYC processes involve extensive paperwork and in-person verifications, causing frustration and abandonment among customers. Digital KYC enables hassle-free onboarding, allowing customers to complete the verification process remotely and swiftly.
  • Reduced Identity Theft
    With the proliferation of online services, the risk of identity theft has surged. Digital KYC adds an extra layer of protection, making it more difficult for cybercriminals to impersonate individuals and engage in fraudulent activities.
  • Effortless Transactions
    Once customers are verified through Digital KYC, subsequent transactions become frictionless. This not only saves time but also enhances the overall user experience, encouraging customers to engage with the business repeatedly.

Conclusion

Digital KYC compliance stands as a pivotal bridge between technological advancements and security imperatives. By adopting digital solutions for customer verification, businesses not only fortify their operations against risks but also nurture customer trust. This symbiotic relationship between businesses and customers, forged through the tenets of Digital KYC compliance, ensures a safer and more prosperous digital landscape for all.

In a world where data breaches and identity fraud are constant threats, businesses that prioritise Digital KYC compliance exhibit a commitment to maintaining the integrity of their operations and fostering trust among their customer base. As technology continues to evolve, embracing robust digital verification measures will be instrumental in achieving sustainable growth while ensuring the security and confidence of all stakeholders involved.

Digital KYC Transforming the BFSI Industry

Digital KYC: Transforming the BFSI Industry

Introduction

The BFSI industry, which includes banking, financial services, and insurance, is undergoing a radical change as a result of the modern world’s more advanced digital infrastructure.As a catalyst, the COVID-19 epidemic hastened the transition to digital technology across sectors, including banking. As a result, a significant shift is taking place in how banks interact with their customers, particularly regarding Know Your Customer (KYC) processes. Digital KYC or Digital Know Your Customer, is revolutionising the BFSI sector by streamlining customer onboarding and enhancing security measures.

 

Digital transformation in the banking industry encompasses a wide range of initiatives. On the one hand, it provides customers convenient access to banking services through various digital channels, such as the Internet, mobile devices, and wearables. This enables individuals to conduct financial transactions digitally at their own convenience, eliminating the need to visit physical bank branches. On the other hand, digitalization is reshaping internal banking processes, such as customer onboarding and loan applications. Previously performed manually at bank branches, these processes are digitised, resulting in increased efficiency, reduced paperwork, and improved customer experience.

 

In this blog, we will examine how Digital KYC may alter the BFSI industry. You will have an understanding of the influence that Digital KYC has had on the BFSI sector as well as its promise for the future of banking by the time you have finished reading this blog post.

 

What is Digital KYC or eKYC?

 

Digital KYC, or eKYC (Electronic Know Your Customer) is a way to verify the identity of an individual online. Unlike the paper-based KYC process, where the users submit the hard-copies of their ID proof documents, DKYC allows them to directly upload the digital copies of Aadhaar card, voter ID card, PAN card or other PoI and PoA to the bank’s portal. The same can be done on a live video call to do a liveliness check as well,

Digital KYC empowers these individuals by allowing them to establish their identity and initiate banking relationships remotely through digital channels such as mobile phones.

 

Types of Digital KYC

The contemporary era of technological advancement has transformed conventional operations across numerous sectors, including the banking and financial industries.This transformation is most evident in Know Your Customer (KYC) processes, which have evolved from paper-based methods to highly digitalized solutions. Digital KYC has emerged as a key tool in client onboarding, ensuring adherence to regulatory compliances and preventing identity theft and financial fraud.To elaborate on this, we dissect the common types of digital KYC processes below.

Online KYC Form

  • Process: Clients must fill an online KYC form, providing all required personal and identification details.
  • Signature: After everything is finished, there is a requirement for a signature, which may be executed in one of two ways:
    • Physical: Print the form, sign, and mail it to the organization’s postal address.
    • Digital: Apply a digital signature to the online form and submit it electronically.

Video-Based KYC

Video KYC is one of the most popular methods to do KYC for the banks and other financial institutions.This technologically advanced KYC method involves extensive audio-visual interaction.

  • Registration: The process begins with service sign-up, followed by a prompt for video KYC verification.
  • Link: A text or email link is sent to the client to initiate the process.
  • Verification: A designated executive captures a live image of the applicant to do a liveliness check and verifies necessary documents such as a PAN card or Aadhaar card on the video call.
  • Geotagging: The location of the person is confirmed via geotagging.
  • Status: Upon completion, clients receive an update on their KYC status within a few days.

 

OTP-Based KYC

The OTP-based KYC is widely used to open digital wallets or online bank accounts.

  • Details: Clients input basic information and navigate to the Aadhaar e-KYC tab.
  • Aadhaar: After entering their Aadhaar number, an OTP is sent to the linked mobile number.
  • OTP: The KYC process concludes once clients enter the received OTP.

 

To sum up, these digital KYC methods have significantly streamlined the KYC process, enhancing efficiency and ensuring regulatory compliance. Organisations and clients must familiarise themselves with these digital procedures, ensuring adherence to the relevant regulations.

 

Enhancing Customer Experience Through BFSI ID Verification Automation

 

Significant progress has been made in the Banking, Financial Services, and Insurance (BFSI) industry as a result of the use of low-code automation, digital KYC solutions, and electronic Know Your Customer procedures. This shift towards technological integration transforms the traditional customer onboarding process into a more seamless, user-friendly experience.

 

The Role of Automation and Digital KYC in BFSI

Automation has played a crucial role in structuring various operations within the BFSI sector, particularly in identity verification. Banks have been leveraging ID verification automation to orchestrate data across diverse systems efficiently. It allows for the processing and consolidation of data into one secure and easily accessible location, ultimately accelerating processes like commercial lending and onboarding.

 

An essential part of this automation process is digital KYC, or eKYC, which can involve using Aadhaar eKYC online. A digital KYC solution provides bank employees with a comprehensive 360° view of a customer’s KYC lifecycle. This holistic understanding enables real-time responses with minimal friction, ensuring a smoother customer journey.

 

Creating a Competitive Edge

Organisations constantly seek a competitive edge over their peers in the rapidly evolving financial landscape. The fusion of automation and digital KYC verification techniques offers this advantage, allowing institutions to improve their customer experience significantly. At the same time, it ensures adherence to essential fraud mitigation strategies and regulatory standards, striking a balance between user experience and compliance.

 

Conclusion

The digital landscape has significantly evolved, propelling the BFSI sector into an era of digital transformation. With digital KYC and eKYC procedures, digital customer onboarding and security measures have been revolutionised, offering clients convenience and efficiency. Automation has also streamlined internal processes such as identity verification and compliance, providing employees with a comprehensive view of a customer’s KYC lifecycle. Amid rapid technological advancements and the incessant pursuit of a competitive edge, organisations must balance offering enhanced customer experience and adhering to regulatory standards. Ultimately, the integration of digital KYC, automation, and identity verification is reshaping the BFSI sector and redefining the future of banking.

What are the new AML-CFT Requirements for Accounting Professionals in India

What are the new AML/CFT Requirements for Accounting Professionals in India?

The Prevention of Money Laundering Act (PMLA) is a comprehensive law that aims to prevent money laundering and terrorist financing in India. The PMLA has been amended several times over the years, and the latest amendments, which came into effect on May 3, 2023, & May 9, 2023, have significant implications for accounting professionals in India.

Under the new amendments, accounting professionals are now considered to be “reporting entities” under the PMLA. This means that they are required to comply with certain AML/CFT requirements, including:

  1. Identifying and verifying the identity of their clients
  2. Keeping records of all financial transactions
  3. Reporting any suspicious transactions to the Financial Intelligence Unit of India (FIU-IND)

The new amendments also clarify which activities carried out by accounting professionals are considered to be “financial transactions” for the purposes of the PMLA. These activities include:

  1. Managing client money, securities, or other assets
  2. Managing bank, savings, or securities accounts
  3. Organizing contributions for the creation, operation, or management of companies
  4. Creation, operation, or management of companies, limited liability partnerships, or trusts, and buying and selling of business entities
  5. Buying and selling of any immovable property
  6. Acting as a trustee, nominee shareholder, director, formation agent, secretary, or partner for a company or LLP
  7. Providing registered office or business address services

It is important to note that not all transactions performed by accounting professionals will come under PMLA scrutiny. For example, transactions that are carried out as part of any agreement of lease, sub-lease, tenancy, or any other agreement or arrangement for the use of land or building or any space and the consideration is subjected to deduction of income-tax as defined under section 194-I of Income-tax Act, 1961, are not considered to be “financial transactions” for the purposes of the PMLA.

The new AML/CFT requirements for accounting professionals are significant and will have a major impact on the way that they conduct their business. Accounting professionals who fail to comply with these requirements could face significant penalties, including fines of up to ₹1 lakh per transaction.

What does the notification mean for accounting professionals?

The new AML/CFT requirements for accounting professionals will have a significant impact on the way that they conduct their business. Accounting professionals will now need to take steps to identify and verify the identity of their clients, keep records of all financial transactions, and report any suspicious transactions to the FIU-IND. Failure to comply with these requirements could result in significant penalties, including fines of up to ₹1 lakh for each failure.

What can accounting professionals do to comply with the new AML/CFT requirements?

There are a number of things that accounting professionals can do to comply with the new AML/CFT requirements. These include:

  1. Implementing a customer due diligence (CDD) process to identify and verify the identity of their clients including but not limited to PEP, Sanctions, Criminal, Defaulting Directors and Companies, Credit Default checks
  2. Keeping records of all financial transactions
  3. Reporting any suspicious transactions to the FIU-IND
  4. Training their staff on the new AML/CFT requirements

What are the benefits of complying with the new AML/CFT requirements?

There are a number of benefits to complying with the new AML/CFT requirements. These include:

  1. Reducing the risk of being involved in money laundering or terrorist financing
  2. Protecting the reputation of your business
  3. Avoiding fines and penalties

How can AuthBridge help?

AuthBridge is a leading provider of AML/CFT compliance solutions. We can help you understand the new AML/CFT requirements and implement the necessary controls to ensure that you are compliant. Our solutions are easy to use and can be customized to meet the specific needs of your business.

To learn more about how AuthBridge can help you comply with the new AML/CFT requirements, please get in touch with us today.

Why businesses need GST ID Verification API

Why businesses need GST ID Verification API

A GST number, known as a Goods and Services Tax Identification Number, is a unique identification number assigned to businesses registered under the GST regime. This number is not only an essential requirement for businesses to carry out various GST-related activities, such as collecting and remitting taxes, filing GST returns, and claiming input tax credits but also helps in the identification and tracking of businesses for taxation purposes and ensures compliance with the regulations.

With GST verification (Goods and Services Tax Identification Number verification), businesses can validate the authenticity and accuracy of GST identification numbers provided by businesses and ensure that they are operating legitimately. 

Why do businesses need to conduct GST ID verification?

  • Prevent tax evasion: GST ID verification helps businesses to ensure that the entities are registered and operating legally to prevent tax evasion. It helps identify cases where entities create bogus invoices, manipulate transaction values, or engage in fraudulent activities to evade taxes. The authenticity of the GST number ensures that it corresponds to the legitimate entity. 
  • Identity theft and misuse: Verifying GST IDs helps detect cases of identity theft and misuse, where fraudsters use someone else’s GST identification number to carry out illegal transactions. It ensures that the GST ID’s registered owner is involved in the transactions.
  • Eliminate fake dealer fraud: With GST ID verification, businesses can filter out ‘phantom dealers’ who do not exist physically but are created to issue counterfeit invoices and claim fraudulent input tax credits. Companies can prevent fictitious transactions and financial loss by validating the GST IDs.
  • Ensure reliable and smoother B2B transactions: Verifying GST ID is critical in B2B (business-to-business) transactions. It helps businesses validate the GST registration status of trading entities or other third parties, setting the seal on them being reliable and trustworthy. This helps establish trust and facilitates seamless transactions within the GST framework.
  • Stay compliant: GST ID verification is crucial for ensuring compliance with tax laws and regulations. By verifying the GST identification number, businesses can stay assured that the entity is registered under the GST regime and has fulfilled its obligations, such as filing tax returns and paying taxes.
  • Filter out non-existent businesses: GST ID verification helps identify businesses that portray themselves as registered entities but, in actual fact, either do not exist or are not registered under GST. It prevents non-existent businesses from participating in the GST system and committing fraud.

Summing up, GST ID verification is essential for maintaining the integrity of the GST system, preventing tax evasion, promoting compliance, and facilitating seamless business transactions within the GST framework.

Using GST Verification API for Fast and Secure Vendor Onboarding

The GST Verification API is useful for businesses and individuals who want to verify the GST registration status of a company before entering into a transaction with them. Businesses can also use it to verify the GST registration status of their suppliers and customers and prevent fraudulent activities like identity theft, tax evasion, fake transactions, phantom dealers, etc. The API typically accepts the GSTIN as the API request and responds with validated data such as the GSTIN, Business Name, Constitution of Business, Address, etc.

Leveraging the GST verification API helps businesses with faster onboarding, scalability, and smooth KYC verification with easy integrations. Businesses can set up automated workflows and perform bulk GSTIN verification in real-time.

Why AuthBridge’s GST Verification API?

With AuthBridge’s GST Verification API, you can validate the authenticity of GST numbers in real-time and onboard genuine and compliant business partners while being assured of the industry’s fastest onboarding turnaround time. The plug-and-play APIs help you digitize and scale your operations with easy-to-activate, simple-to-use data exchange mechanisms.

With our GST Verification APIs, you can get:

  • GSTIN Active Status: Enter the provided GSTIN number and verify if the provided account is active and valid.
  • GST Filing Details: Verify GST numbers, Status, Taxpayer types, and state bifurcation.
  • Credibility Analysis: Dig deeper with details like mode of filing and return type bifurcation for further analysis.

Types of GST Verification APIs and their working:

  • Know Your GST: Fetches all the GST numbers registered to a PAN card
  • PAN-GST linkage: Fetches all the GST numbers registered on a PAN card
  • GSTIN View and Track Return: Fetches GST return of the person/entity in a given financial year
  • GSTIN TAXPAYER: Fetches GST return of the entity in a given financial year

You can choose from different types of modes as per your business requirements.

Simplify your compliance journey with our robust GST API, assuring seamless integration with your existing workflows. AuthBridge’s GST Verification API helps you validate GST IN in bulk in real time and assures you of the industry’s fastest onboarding TAT.

Get in touch with our solution expert, or email us at sales@authbridge.com  to learn more. Book a free consultation today and help us understand your requirements in detail.

All you need to know about Aadhaar Verification API

All you need to know about Aadhaar Verification API

The rising instances of identity thefts, cybercriminals exploiting stolen identities, and forged/fake identities (challenging to validate with the naked eye) have made identity verification crucial today. Verifying individuals via their Aadhaar, an identification card comprising a 12-digit unique identification number tied to an individual’s fingerprints, face and eye scan and issued by the Indian government, is one of the ways to validate an individual’s identity and filter out the fake ones to minimize the risk of identity frauds. Aadhaar Card Verification is conducted as a part of the KYC process to prevent the risks of identity fraud and filter out duplicates, fake, and ghost identities.

Aadhaar verification is commonly done in various sectors, including banking, telecom, government services, e-commerce, logistics, FMCG, and more, when onboarding white-collar or blue-collar employees, third parties, or during business partnerships. 

Why is Aadhaar Card Verification required?

The Aadhaar Card Verification solution helps conduct KYC verification before conducting business with the user. With an Aadhaar verification solution, companies can

  • prevents risks and identity fraud
  • make verification safer, faster, and smarter
  • reduce the week-long verification process to a few mins
  • eliminate duplicates, fake, and ghost identities

This has made businesses across sectors to leverage Aadhaar Authentication APIs to verify and validate the identity of individuals in India before/during onboarding, and enable a secure and efficient access to various services while maintaining data privacy and security. The Aadhaar Authentication APIs provide organisations with a secure and standardized way to perform real-time authentication checks against the UIDAI database.

Why is Aadhaar Verification API – the need of the hour?

Aadhaar verification API is essential for any business, financial institution or entity in determining the credibility of their customers. With Aadhaar verification, you can successfully validate the users’ information about their Full Name, Address, Mobile Number and other data that could be used to verify an individual.

Also Read: Aadhaar Card Verification – Everything You Need to Know

Our robust and reliable Aadhaar Verification API will help you verify your customers swiftly and safely. With AuthBridge’s Aadhaar Verification API to enable an additional layer of security for fraud prevention and onboard reliable users, customers, third-parties, business partners faster.

Why choose AuthBridge’s  Aadhaar Verification API?

  • Simple and Easy To Use: AuthBridge’s Aadhaar Verification API is optimized for a seamless user experience.
  • Prevents Identity Frauds: Our API detects fraudsters using fake Aadhaar cards or fake credentials.
  • Plug and Play APIs: Web portal, APIs, and Mobile SDK without any third-party assistance.
  • Compliant: Verifies all the information provided by the Aadhaar department, ensuring they are legit and accurate.
  • Real-Time Verification: Data is retrieved and verified against the database within seconds, saving time and costs.
  • Industry Fastest Onboarding TAT: Onboard customers, third parties, and white-collar and blue-collar employees within minutes and stay assured of the industry’s fastest onboarding TAT.

Types of Aadhaar Verification APIs

Choose from different kinds of modes as per your business requirements

  • Aadhaar Paperless 

Fetch POI and POA data with Aadhaar Virtual ID (VID) Number

  • Aadhaar Paperless Offline eKYC 

Upload Aadhaar Number XML file to fetch e-Aadhaar details easily

  • Aadhaar Verification via Digilocker

Conduct Aadhaar e-KYC online by fetching e-Adhaar based on Digilocker data

  • Aadhaar QR Search

Pull Aadhaar POA and POI data using the Aadhaar QR code.

The basic workflow of how our Aadhaar Authentication API works

Consent requirement –> Authentication request initiation process → Biometric authentication → OTP authentication → Authentication response from UIDAI

Get AuthBridge’s Aadhaar Verification APIs For

  • White Collar and Blue-Collar Employee Onboarding: Hire the right workforce and make onboarding journeys seamless with blue-collar/white-collar employee verification.
  • Customer Onboarding: Validate customers to reduce identity fraud and comply with KYC/AML guidelines by regulatory bodies.
  • Third-Party Onboarding: Mitigate financial and reputational risks when onboarding vendors, merchants, suppliers and distributors.
  • Tenant Verification: Screen prospective tenants before signing an agreement and prevent any illegal activity on your premises.
  • Players Verification: Verify players to prevent fraudulent transactions, underage paying, chargeback and affiliate frauds on your platform.

Ease your compliance journey with our robust Aadhaar API, assuring seamless integration with your existing workflows and processes. AuthBridge’s Aadhaar Verification Solution helps you validate Aadhaar in bulk within minutes and reduces the onboarding turnaround time to a great extent.

Get Started Today!

Don’t hesitate to contact our solution expert or email us at sales@authbridge.com to learn more. Book a free consultation today and help us understand your requirements in detail.

How to Choose Best Background Verification Vendor

How to Choose the Best Background Verification Vendor to Recruit Right?

In today’s world, employee background verification has become an essential part of the recruitment process. Not only does it protect the employer’s company, but it also builds trust and strengthens fair competition among businesses. Employers must maintain employee records and be prepared to provide them to other companies upon request. The pandemic forced workplaces to adapt to digital mode, making recruitment more objective, bias-free, and cost-effective. However, this trend also increased the risk of potential employees engaging in fraudulent behaviour to get the job, or taking on multiple jobs while working remotely – putting the company’s revenue and quality of deliverables at risk.

 

Let’s discuss the importance of choosing the best background verification vendor for recruitment to ensure a trustworthy and effective hiring process.

 

Possibilities of Fraud During the Hiring Procedure

The recruitment process is a crucial aspect of any organisation. It demands a lot of attention to ensure that the right person is hired for the right job. However, post pandemic years, there has been a significant rise in the number of fraudulent activities in the recruitment process. Here are some of the most frequent types of fraud that can occur during the recruitment process:

 

Identity Theft

Candidates may use fake credentials or pretend to be someone else to deceive you during hiring. Impersonating someone else who matched the work experience or qualification criteria. To avoid this, always verify the candidate’s identity and confirm their work experience and credentials.

Example: A candidate applies for a sales job and uses a fake name on their resume. A background check reveals this is a case of identity theft. They provide fake references and work experience to show they are experienced in sales.

 

Hiding Information 

Candidates may hide any negative information that could affect their hiring chances, such as past incidents or misdemeanours. To avoid this, conduct a thorough background check and check their references.

Example: A candidate applies for a job as a driver, but they don’t disclose that they have a history of DUI charges. The employer hires them without knowing this information, and the employee gets into a car accident while on the job. A police verification check would have made things easier.

Misinformation

Candidates may lie about their work experience, education, or qualifications to appear more qualified. To avoid this, always verify the candidate’s education and work history.

Example: A candidate applies for a job as a software engineer, claiming to have a degree from a prestigious university. An education background check reveals that the candidate never attended that university.

 

How to Prevent Employee Fraud 

Recruiting new employees is a critical task that can determine the success of a business. However, hiring the wrong employees can lead to decreased productivity, reduced morale, and even financial loss. To avoid such situations, employers must take measures to prevent employee fraud during recruitment. Here are some ways to prevent such incidents:

 

  • Thorough employee background check: Verify the accuracy of the information provided by employees to catch false information that could be dangerous for the company.
  • Education Check: Verifify the educational qualifications and check if the candidate has attended and passed out of the mentioned schools, colleges and universities
  • Behaviour records check: Check behaviour records for incidents of workplace violence, sexual harassment, or negligent behaviour that can pose a threat to the safety of the working space and other employees.
  • Criminal record check: Thoroughly check the criminal records and conduct police verification of potential employees before hiring to reveal any engagement in unfair means that threaten society.
  • Mandatory license verification: Verify all licenses required for the job to avoid any mishaps and legal action. Eg., driver licence verification
  • Strong policy against fraudulent behaviour: Have strong policies in place with appropriate penalties to prevent candidates from engaging in fraudulent behaviour.

 

Ensuring the Right Hire: Effective Employee Background Verification 

Employers must conduct effective employee background verification checks to ensure they hire the right candidates. Here are some effective ways to conduct employee background verification:

 

  1. Criminal and legal records check: These records track any court cases or police FIRs against the candidate to reveal potential hazards and assist in deciphering employee behaviour.
  2. Employment Record Check: Requesting records from previous employers helps verify work experience and workplace behaviour.
  3. Address Verification Check: Checking the legitimacy of the employee’s PoA to validate permanent and correspondence address 
  4. National identity record register: Conducting NID checks via Aadhaar card or PAN card number check to identify discrepencies
  5. National academics depository: Verifying academic background information helps ensure necessary qualifications and skill sets.
  6. Education Check: Running a background check on academic database, in addition to physical (field) verification provides accurate information about work exposure.
  7. Social media: Examining social media profiles can reveal any mismanagement or connections the company may want to avoid.

 

Things to Consider when Choosing the Best Background Verification Vendor to Recruit Right

Choosing the best background verification vendor is crucial for any business looking to hire the right employees. Here are some factors to choose a vendor:

  1. Proprietary Database: A vendor who has built a substantial proprietary database can provide higher accuracy in less time
  2. Reputation: Look for a vendor with a good reputation in the industry. Check their previous reviews and testimonials from former clients.
  3. Accuracy: Verify that the vendor’s verification methods are accurate and up-to-date. Inaccurate information can lead to the hiring of the wrong candidate.
  4. Compliance: Ensure that the vendor is compliant with all necessary regulations and laws, such as data privacy laws.
  5. Turnaround time: Choose a vendor that provides timely results, as a delay in verification can prolong the hiring process.
  6. Customization: The vendor should be able to adjust their services to meet the specific requirements of your business.

 

Considering these factors, Authbridge is the best employee background verification company for businesses looking to recruit right. Here’s why:

  • Proprietary Database: AuthBridge has 1billion+ proprietary database records to enable fast and accurate verification
  • Reputation: With 17+ years of experience, Authbridge is a well-established and trusted background verification company in India, 
  • Accuracy: Authbridge’s industry leading authenticating solutions offer near 100% accuracy 
  • Compliance: Authbridge is ISO-27001:2013 and ISO-9001:2015 compliant to ensure enterprise-grade security and quality
  • Turnaround time: With 1billion+ database records, enjoy industry-leading turnaround time
  • Customization: End-to-end authenticating solutions for all your employee background verification needs
What and How of Udyam Aadhaar Verification

What and How of Udyam Aadhaar Verification

Introduction 

For business owners in India, Udyam registration (UR) offers a quick and simple online process to avail of government benefits and subsidies. However, to ensure the authenticity of their Udyam registration certificate, they need to follow the Udyam verification process.

 

Fortunately, the Udyam verification process is easy and can be completed online. By verifying their Udyam registration number and details provided in the certificate, business owners can confirm the accuracy of the information provided during the registration process.

 

This blog aims to guide business owners through the Udyam verification process and provide valuable information about the benefits of Udyam registration. By the end of this blog, readers will clearly understand how to verify their Udyam registration certificate and take advantage of the government benefits and subsidies available to them.

 

So, for all the business owners in India, this blog is a must-read to ensure the authenticity of their Udyam registration certificate and make the most of the benefits offered by the government. Let’s explore the world of Udyam verification and registration all together!

 

What exactly is “Udyam Registration”?

Udyam registration is a procedure that allows individuals who wish to form businesses to register their businesses. Here are some important aspects of this process:

  • Upon completion of the registration procedure, individuals receive a Udyam certificate as evidence of registration.
  • Udyam registration was initiated in 2020 to foster an entrepreneurial spirit and support India’s MSMEs (micro, small, and medium-sized businesses).
  • The registration process for Udyam is noticeably less complicated than registering for any other kind of business. There is no requirement to present any papers, certifications, evidence, or other documentation.
  • The Udyam registration process is entirely free, so there is no need to pay any registration fees.

Overall, registering your business with Udyam is a straightforward, cost-effective process that provides official documentation of your company’s registration. These changes have made it easier for individuals to start their businesses and contribute to the growth of the Indian economy.

 

Why Should One Register for Udyam?

Completing Udyam registration has many benefits, making it a worthwhile process for individuals wishing to establish a business. Why you should consider completing Udyam registration, here are the reasons:

  • No fees: Unlike other methods of registering a business that involves paying fees, Udyam registration is completely free. Additionally, you are not required to pay any fees once the certificate expires.
  • Fully online: The registration process can be completed online through the official portal at https://udyamregistration.gov.in/Government-India/Ministry-MSME-registration.htm. You can provide scanned copies or digital copies of any required documentation.
  • Simpler licensing: Once you have a Udyam certificate, obtaining additional licenses for your business becomes easier. The process is also simpler because the government has already verified your business.
  • Increased creditworthiness: Your business’s creditworthiness increases once you have applied for Udyam registration. It can make applying for business loans or other tenders and applications easier.
  • Reduced cost: Udyam registration can also make your business eligible for reduced fees when filing patents or copyrights.

Overall, completing Udyam registration is a simple and cost-effective way to establish your business and gain access to various benefits and opportunities that can contribute to the growth and success of your business.

 

How to do Udyam Verification with Udyam Aadhaar Verification APIs

 

Udyam Aadhaar Verification is a critical process for businesses in India to avail of various government schemes and benefits. Fortunately, the process has become more manageable using Udyam Aadhaar Verification APIs. Here is a step-by-step process on how Udyam Aadhaar Verification APIs simplify the verification process: 

 

  1. Provide Udyam Aadhaar Number: To initiate the process of Udyam Aadhaar Verification, businesses need to provide their unique 12-digit Udyam Aadhaar Number assigned by the government of India to Micro, Small and Medium Enterprises (MSMEs).
  2. Enable Customers or Partner Businesses to Enter Udyam Aadhaar Numbers: Businesses can enable their customers or partner businesses to provide their Udyam Aadhaar Numbers directly in place of the document, making the verification process simpler and quicker.
  3. Get Verified Udyam Details: The Udyam Aadhaar Verification API verfies the validity of the Udyam Aadhaar Memorandum, verifies all the business data associated with the Udyam Aadhaar Number and returns MSME Business Details from the Udyam Verification portal.
  4. Access Verified Enterprise Details: The Udyam Aadhaar Verification API provides access to verified business details such as Enterprise Name, Enterprise Type, Major Activity, Registered Address, Enterprise Plant Details, Registration Date, Mobile Number, Email Id, and NIC Codes related to the business.

 

API based verification fastracks the business verification process while maintaining accuracy. 

The Importance of Udyam Registration for MSMEs in India

 

Udyam registration provides various utilities for businesses seeking government benefits and subsidies. Here are some ways in which Udyam registration can be beneficial:

 

Lending:

  • Verifying businesses/entities with a high risk of fraud becomes paramount in banking, finance, and retail. Udyam certificate verification helps lending institutions validate the authenticity of enterprises and reduce the risks associated with financial and reputational damage.
  • By verifying Udyam registration, lending institutions can make profitable deals and prevent unreliable borrowers from damaging their financial standing.

 

Merchant/Business Partner Onboarding:

  • E-commerce or aggregator companies must onboard MSME merchants or entities on their platforms. Udyam Aadhaar verification assures businesses that they are dealing with a genuine business partner that would not cause unforeseen risks or threats in the future.
  • By ensuring that their business partners are registered with Udyam, e-commerce or aggregator companies can reduce the risks of dealing with fraudulent businesses and protect their reputations.

Conclusion 

Udyam verification is vital for the growth of MSMEs in India. Udyam Registration assigns a unique identification number to businesses, facilitating access to government schemes and benefits. Udyam Aadhaar Verification APIs simplify the process, allowing businesses to focus on growth without paperwork.

 

Udyam Registration not only provides access to loans, subsidies, and other government schemes, but also helps MSMEs establish partnerships with ease. As the MSME sector continues to grow, Udyam Verification and Registration will remain essential in supporting and promoting business growth in India.

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