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Opened a digital bank account? Know the difference between Full KYC and e-KYC

e-KYC account is opened when you open an online savings account through the Aadhaar OTP verification process. You need to complete the full KYC process wthin 12 months to continue using the account. 

Have you recently opened a digital zero balance account and the bank representative is throwing bank lingoes such as Full KYC, limited KYC or e-KYC at you? While you loved the experience of opening a digital account, these terms can be little off-putting.  All these terms may have bounced off your head, but these terms are not hard to understand. It is very easy.  

You have nothing to fear as we are going to describe to you the difference between full KYC and e-KYC.

e-kyc vs full kyc

Why is KYC process is important?

Before you open a savings account, you need to complete the KYC process. The KYC procedure is also applicable when you invest in the stock market or mutual funds.

The process is mandatory for all bank accounts. The regulatory body, Reserve Bank of India has mandated all banks to carry out KYC process for all their accounts. It is done to control and curb money laundering.

However, the KYC process is different for digital savings account opened online.

e-KYC, Limited KYC or OTP Account

What is e-KYC?

When you open a digital account through your PAN card and Aadhaar card, you receive a one time password on your Aadhaar registered mobile number that you have to enter when you open the account. Accounts opened through this method are e-KYC savings accounts.

These accounts are also called Limited KYC accounts as the KYC process is not complete. OTP account is another name for this account. It is because the account is verified through the OTP that you receive on your Aadhaar registered mobile number.

Benefits of e-KYC account or Limited KYC account

  • Individuals can open bank account instantly.
  • The account opening journey is totally paperless.
  • Interested customers don’t have to visit bank branch to open account.
  • Account can be opened from the comfort of your home, office or even on the go.
  • Digital savings account can be opened 24*7.

Restrictions on e-KYC accounts

As the limited KYC is opened without any manual verification, it comes with a few restrictions.

  • The maximum amount of balance that you can keep in your account at any day is Rs.1 lakh. E.g. you can’t deposit Rs. 50,000 on day one and Rs.75,000 on day 2 without taking any withdrawals.
  • The maximum amount of transactions that you can do in a year is Rs.2 lakh.
  • The account is valid for 12 months. You can continue using the account if you complete your full KYC procedure. If you don’t complete the KYC process, then your account will be closed. Your amount in the account will be sent to your communication address through DD.

Full KYC 811 Account

What is full KYC?

After you open a digital savings account online, you need to complete the full KYC process of the account within 12 months to continue using your Kotak 811 account.

How to complete the full KYC account?

To complete the full KYC of your account, you need to book an appointment, call customer centre or visit the bank branch.

Biometric and physical are the two ways to complete the KYC process. The biometric process is applicable if you are using Aadhaar card to carry out the KYC process. The customer just needs to give his finger print that will be authenticated with the details fetched from UIDAI.

In case of physical verification without Aadhaar, the account holder has to put forward any one of the four valid KYC documents.

Benefits of full KYC account

  • Full KYC account has a lifetime validity. Your account won’t be closed after 12 months.
  • There are no restrictions on transaction limit or limit on account balance in a full KYC account. You can hold more than Rs. 1 lakh at any given time
  • Full KYC customers can deposit cash through their bank branch.
  • Customers can request for cheque book through the mobile banking app.
  • Account holders can get higher interest rates by opening recurring deposits and fixed deposits.
  • Individuals can apply for credit cards of their choice.

What’s Next: Video KYC?

When you open a digital savings account, you are initially opened an e-KYC account. To continue using the online savings account, KYC process needs to be completed. After the completion of the KYC procedure, the account becomes a regular savings account without any limit.

But what if you could open a full fledged account digital account from your home or office without steeping outside. That’s right.

Kotak 811 has introduced video KYC through which customers can open a full-fledged account through KYC verification over video call. The account will be open in 8 hours. After the account is open, you just need to download the mobile banking app and start transacting.


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