Build vs. Buy for KYC: When In-House Identity Verification Stops Making Sense

KYC for Microfinance: Biometric eKYC in Low-Connectivity, Field-Led Onboarding

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/marketing-cms/m2p-blog/2026/09/m2p_kyc_suite_creative_2000x1000.webp" alt="CKYC, eKYC, Video KYC — Explained. Consolidated. Compliant." title="" id="1g0aimrri" width="100%" height="362">Every bank, NBFC, fintech, insurer, and increasingly every government service desk in India runs on the same underlying question: is this person who they say they are? The answer used to take days and a stack of photocopies. Today, it's expected to take seconds — without compromising on compliance, fraud prevention, or customer experience.That shift is why "KYC software" has become one of the most searched terms in Indian BFSI technology procurement. But the term hides a lot of complexity. Search for it and you'll find a dozen vendors, a dozen acronyms — CKYC, eKYC, VKYC, AUA, KUA — and very little that actually explains how these pieces fit together, what to look for before buying, or what problems still don't have great answers.This guide is meant to be the reference point. It covers what KYC software actually is, the components that make up a complete stack, the evaluation questions most buyers don't think to ask, the compliance landscape it has to operate inside, and where the category is headed next.<h2 class="heading-node" id="9wni4ji28">What Is KYC Software, Exactly?</h2>KYC(Know Your Customer) is a regulatory requirement, not a product. KYC software is the technology layer that lets a regulated institution meet that requirement digitally: capturing a customer's identity, verifying it against authoritative sources, checking it for fraud or tampering, and maintaining an auditable record, all without a human being physically checking a photocopy of a PAN card.In India, this has a specific technical shape because of two connected but distinct government identity infrastructures:<ul class="list-node" id="mi30ir1k1"><li>CKYC (Central KYC Registry) — a central repository (maintained by CERSAI) that stores KYC records once and lets any regulated entity retrieve them instantly, rather than re-collecting the same documents every time a customer opens a new account elsewhere.</li><li>Aadhaar-based eKYC — verification against UIDAI's Aadhaar database, accessed through licensed AUA/KUA (Authentication User Agency / KYC User Agency) integrations.</li></ul>Everything else in a modern KYC software stack — video verification, document OCR, biometric matching, fraud scoring, masking — exists to make those two verification paths faster, more secure, and usable across more channels (web, app, branch, call centre, kiosk).<h1 class="heading-node" id="1klysmv0w">The Components of a Complete KYC Software Stack</h1>If you're evaluating KYC software for the first time, the acronyms are the first wall you hit. Here's what each piece actually does and when you need it — because in practice, most institutions need several of these working together, not just one.<h2 class="heading-node" id="bvuq852ab">CKYC Retrieval</h2>Pulls a customer's existing KYC record using their OVD (officially valid document) number, date of birth, and mobile number. If the customer has ever completed KYC anywhere in the regulated financial system, this can complete onboarding almost instantly — no fresh document upload needed. This is usually the first check a well-designed KYC software flow should attempt, since it's the fastest and cheapest path when it hits.<h2 class="heading-node" id="hphmnisyx">Aadhaar eKYC (AUA/KUA)</h2>When there's no CKYC record to retrieve, Aadhaar-based authentication is the next layer — verifying identity via OTP, fingerprint, face, or iris, and fetching demographic data (name, DOB, address, photograph) directly from UIDAI. This requires the vendor to hold live AUA/KUA licensing, not just claim "Aadhaar integration" — a distinction worth confirming during vendor evaluation, since sub-licensing arrangements vary in reliability and audit-readiness.<h2 class="heading-node" id="rvlxo8k65">Video KYC (VKYC)</h2>RBI's video-based customer identification process (V-CIP) allows fully remote, branch-free onboarding — a human or AI-assisted agent verifies the customer's live video, checks document authenticity, and confirms liveness, all in one session. This matters enormously for lenders and neobanks trying to acquire customers in geographies where opening a physical branch isn't viable, and for institutions that need to serve customers without reliable Aadhaar OTP access (NRIs, elderly customers, low-connectivity regions).<h2 class="heading-node" id="wz3dugzb1">Min-KYC</h2>A lesser-known but increasingly important option: a CKYC-driven onboarding path that doesn't require Aadhaar verification at all. This exists for use cases where full KYC can be completed later (e.g., certain prepaid instruments, small-value accounts) and matters for products that need to go to market fast, in geographies or customer segments where Aadhaar-linked onboarding adds friction or isn't the ideal first step. It's rarely discussed in KYC software marketing, but it's often the fastest, cheapest onboarding path available for eligible use cases.<h2 class="heading-node" id="mwda25dsb">Instant Background Verification</h2>Beyond identity, many onboarding flows also need to check employment history, court records, and address — particularly for lending, hiring, and high-value account opening. Paperless, consent-driven background checks reduce this from a multi-day manual process to something that runs inline with digital onboarding.<h2 class="heading-node" id="45un4891s">Aadhaar Masking</h2>A narrower but non-negotiable requirement under UIDAI rules: any entity storing or displaying Aadhaar numbers must mask the first eight digits. Good KYC software handles this automatically and extends it to custom document formats — not just standard Aadhaar cards — since institutions often need to mask Aadhaar numbers embedded in other scanned documents too.<h2 class="heading-node" id="bld62nlcj">Identity Microservices</h2>For engineering teams building bespoke onboarding flows rather than adopting an off-the-shelf journey, granular APIs matter more than a packaged UI: liveness detection, OCR extraction, face match, GST/KYB (Know Your Business) checks, crime record checks, and AML screening as individually callable services. This is the layer that lets a product team compose their own flow instead of being boxed into a vendor's default journey.<h1 class="heading-node" id="evsu6w33e">What to Actually Evaluate Before Buying KYC Software</h1>Most KYC software comparisons stop at "does it do Aadhaar eKYC and Video KYC." That's table stakes. The questions that actually differentiate vendors — and that most vendor pages, including product pages across the industry, don't answer clearly — are these:1. Fraud detection accuracy, not just fraud detection claims. Almost every vendor claims "AI-powered fraud detection." Few publish what that means in practice: false-positive rates, spoofed-image detection accuracy, deepfake resilience for video KYC, and how forensic checks perform against real attack patterns (photo-of-photo, screen replay, synthetic identity documents). When evaluating a KYC software vendor, ask for these numbers directly, or for reference customers who can speak to fraud outcomes post-implementation — not just onboarding-speed outcomes.2. On-premise vs. cloud availability. Cloud-only KYC software is the default assumption in most vendor pitches, but it's a dealbreaker for public sector institutions, PSU banks, and any entity with data-residency or air-gapped infrastructure mandates. A vendor that genuinely supports both cloud and on-premise deployment — not just "can be discussed" — is solving a real, underserved requirement.3. Total cost of ownership, beyond the per-transaction rate. Per-verification pricing is easy to compare; what's harder to see upfront is the cost of integration effort, the cost of maintaining compliance as regulations change, and the operational cost of handling verification failures and manual review queues. A lower headline rate with a higher failure/fallback rate can cost more in practice. Ask vendors for real fallback-rate and manual-review-rate data, not just headline accuracy claims.4. Coverage beyond Aadhaar, if you operate outside India or serve NRI/foreign-national customers. Aadhaar-centric KYC software is built for the Indian resident use case. If your institution serves NRIs, foreign nationals, or operates in other markets, ask explicitly how the platform handles non-Aadhaar identity documents (passports, foreign national IDs) and whether that capability is native or requires a separate integration. This is a genuine gap across most Indian KYC software vendor pages, ours included as of today — and one worth pressing on directly in RFPs, since the answer varies a lot between vendors who've actually built for it and vendors who haven't.5. Compliance depth: RBI Master Direction, UIDAI audit checklist, and DPDP Act. KYC software doesn't operate in a compliance vacuum. It needs to satisfy RBI's KYC Master Direction (record-keeping, risk categorization, periodic updation), UIDAI's audit checklist for any Aadhaar-linked processing, and increasingly, the Digital Personal Data Protection (DPDP) Act's consent and data-minimisation requirements. Ask any vendor how their audit trail, consent logging, and data retention policies map to all three — not just RBI.6. Low-code/no-code configurability vs. rigid pre-built flows. Institutions with in-house product teams often want to configure onboarding journeys — reordering steps, adding conditional logic, swapping verification methods by customer segment — without a fresh engineering sprint every time. Whether a KYC software platform offers genuine no-code workflow building, or just customization via vendor professional services, materially changes how fast you can iterate post-launch.<h1 class="heading-node" id="mkkhxutgo">Why Institutions Are Consolidating Toward a Single KYC Software Suite</h1>A pattern worth naming explicitly: most institutions didn't set out to buy "a KYC suite." They bought Aadhaar eKYC from one vendor, added Video KYC from another when RBI's V-CIP norms landed, bolted on a background-verification tool for lending use cases, and built Aadhaar masking in-house or through a fourth integration.The result, a few years in, is a fragmented identity stack: multiple vendor contracts, multiple compliance audits, multiple points of integration failure, and no single, coherent view of a customer's verification history across products.Consolidating onto a single KYC software platform — one that covers CKYC, Aadhaar eKYC, Video KYC, Min-KYC, masking, background verification, and identity microservices under one contract, one dashboard, and one audit trail — isn't just a cost play. It removes the integration overhead of maintaining multiple vendor relationships, gives compliance teams one place to pull audit records from, and lets product teams reuse the same identity infrastructure across new products (lending, cards, neobanking, merchant onboarding) instead of re-procuring for each one.<h1 class="heading-node" id="in1nf1hdi">Where KYC Software Is Headed</h1>A few shifts worth watching over the next few years:<ul class="list-node" id="odv04qucp"><li>Agentic AI in verification workflows. Beyond rules-based fraud flags, AI models that can reason across a full onboarding session — cross-referencing document data, liveness signals, and behavioural patterns — are starting to move from research to production in identity verification.</li><li>Deeper video KYC automation. Fully AI-assisted VKYC sessions (reducing dependency on live human agents for routine cases, while retaining human review for edge cases) are becoming a genuine efficiency lever for high-volume onboarding.</li><li>Convergence with AML and fraud monitoring. KYC software and fraud/AML systems have historically been separate purchases; the operational logic for combining them — shared identity signals, shared risk scoring — is increasingly hard to ignore.</li><li>Government and public-sector adoption. Digital identity verification is expanding well beyond BFSI into direct citizen service delivery, welfare disbursement, and public-sector onboarding — a segment most KYC software vendors aren't built to serve at that scale or compliance bar.</li></ul><h1 class="heading-node" id="7im0ydgyj">Where M2P's KYC Suite Fits</h1>M2P's <a class="link" href="https://m2pfintech.com/kyc-suite/?utm_source=blg&amp;utm_medium=kyc&amp;utm_campaign=suite" target="_blank">KYC Suite</a> is built around the consolidation logic described above — CKYC retrieval, Aadhaar-based AUA/KUA authentication, Video KYC (available on both cloud and on-premise), Min-KYC, Aadhaar masking, instant background verification, and identity microservices, all accessible through a single low-code/no-code platform with one audit trail.It's currently used by 75+ BFSI institutions and 5 state governments, processing 3.8 billion digital identification transactions and 10–13 million verifications a day — a scale that reflects both consumer fintech and public-sector deployment, which is a meaningfully different bar than consumer-only KYC software vendors are built to clear.If you're a bank, NBFC, fintech, or government body evaluating what to consolidate onto — or simply trying to move past the CKYC-vs-eKYC-vs-VKYC confusion this guide opened with — it's worth a closer look at the KYC Suite and a <a class="link" href="https://m2pfintech.com/contact-us/?utm_source=blg&amp;utm_medium=kyc&amp;utm_campaign=suite" target="_blank">conversation with the team</a> about which modules map to your actual onboarding gaps.

M2P's AI-Powered KYC Suite: A Complete Guide to Digital Identity Verification, Compliance, and Onboarding at Scale

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/12/Learning-from-mistakes-banner-2-1.webp" alt="M2P Fintech" title="" id="by9un3ux7" width="100%" height="487">Learning from mistakes is an essential part of engineering practice. Mistakes can lead to significant milestones that transform design, process, and overall outcome. To know how, read this blog. Our Engineering Director, <a class="link" href="https://www.linkedin.com/in/maathavan-tr-vinayak-2ab153a3/" target="_blank" rel="noopener">Maathavan Vinayak</a>, takes you through proven strategies that normalize mistakes and transform them into catalysts for continuous learning and improvement.<h2 class="heading-node" id="ygy40wx68" style="text-align: justify">Create a Culture of Openness</h2>Encourage engineers to report and discuss mistakes without fear of judgment or blame. Foster an environment where team members feel comfortable admitting errors and sharing their learnings.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/12/Learning-from-mistakes-1.webp" alt="M2P Fintech" title="" width="100%" height="487"><h2 class="heading-node" id="sp600ppnd" style="text-align: justify">Establish Clear Processes</h2>Implement a formal process for investigating mistakes, identifying root causes, and documenting lessons learned. This process should be standardized across teams and projects to ensure consistent learning across the organization.<h2 class="heading-node" id="75e7u8c1w" style="text-align: justify">Analyze Root Cause&nbsp;</h2>Go beyond simply identifying the immediate cause of a mistake and dig deeper to understand the underlying systemic issues that contributed to the error. This may involve reviewing design documents, analyzing process flows, and interviewing stakeholders.<h2 class="heading-node" id="hx5ygua8e" style="text-align: justify">Implement Corrective Actions</h2>Once the root causes have been identified, develop, and implement effective corrective actions to address the underlying issues and prevent similar mistakes from recurring. This may involve design modifications, process improvements, or training initiatives.<h2 class="heading-node" id="7dmutodf7" style="text-align: justify">Communicate Lessons Learned</h2>Share the findings of mistake investigations and the lessons learned with the broader engineering community. This can be done through team meetings, documentation, or dedicated knowledge-sharing platforms.<h2 class="heading-node" id="1zgvbwnkv" style="text-align: justify">Use Insights for Future Improvement</h2>Integrate the insights gained from mistake analysis into future design reviews, process development discussions, and quality assurance procedures. This ensures that lessons learned are embedded in ongoing engineering activities.<h2 class="heading-node" id="a549a2j3k" style="text-align: justify">Document Wisdom</h2>Keep a record of lessons learned from each mistake. Documenting your experiences, along with the insights gained, helps create a reference for future situations. This can be in the form of a personal journal, team retrospective, or project documentation.<h2 class="heading-node" id="fhgcg4qhu" style="text-align: justify">Share Knowledge</h2>Share your experiences with others. Discussing mistakes openly fosters a culture of learning and helps prevent similar errors in the future. It also demonstrates vulnerability and encourages others to share their experiences.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/12/Learning-from-mistakes-2.webp" alt="M2P Fintech" title="" width="100%" height="487"><h2 class="heading-node" id="id7m285wl" style="text-align: justify">Be Proactive to Prevent Mistakes</h2>Employ tools and methodologies such as Failure Modes and Effects Analysis (FMEA), hazard analysis, and risk management techniques to proactively identify and address potential mistakes before they occur.<h2 class="heading-node" id="0vibwyykk" style="text-align: justify">Foster Learning&nbsp;</h2>Encourage a growth mindset among engineers, emphasizing the value of learning from mistakes as an opportunity for improvement and innovation. Recognize and reward individuals who contribute to mistake prevention and learning initiatives.<h2 class="heading-node" id="0z5206u6a" style="text-align: justify">Take Ownership</h2>Give engineers ownership of their work and encourage them to identify and address potential mistakes proactively. Empower them to suggest improvements and implement corrective actions within their scope of responsibility.<h2 class="heading-node" id="8w1pk8sfh" style="text-align: justify">Improve Continuously&nbsp;</h2>Regularly evaluate and refine the processes for identifying, analyzing, and learning from mistakes. This will ensure that the learning process is effective and adaptive to the evolving needs of the engineering function. By incorporating these strategies, engineering teams can transform mistakes into milestones and pave the way for a culture centered around learning and continuous improvement. The proactive approach not only reduces errors but also elevates design quality and creates superior outcomes for projects and products. Now, it's your turn to share. What's your most valuable lesson learned from a mistake in your engineering journey? Share your thoughts and experiences in the comments below. <a class="link fui-Link ___1qmgydl f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link fui-Link ___1qmgydl f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noreferrer noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link fui-Link ___1qmgydl f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq" href="https://twitter.com/m2pfintech" target="_blank" rel="noreferrer noopener">X</a>&nbsp;for insightful fintech bytes curated for curious minds like you.

How can Engineers Turn Mistakes into Wins?

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-19.webp" alt="M2P Fintech" title="" width="100%" height="358">Aadhaar data needs to be treated securely. According to the RBI and Government of India mandate, organizations that collect and store identity details must mask the first 8 digits of the Aadhaar number and reveal only the last 4 for security and compliance. Whether it's for government subsidies, income tax filing, or opening bank accounts, Aadhaar numbers must be validated and masked.&nbsp; <a class="link" href="https://m2pfintech.com/blog/edo-suite-mask-aadhaar-in-an-instant-the-right-way/">Aadhaar masking tools</a>&nbsp;use Verhoeff algorithm, a checksum algorithm to validate, detect errors and ensure the integrity of the masked Aadhaar number. At M2P, we implemented Verhoeff algorithm on <a class="link" href="https://m2pfintech.com/blog/the-implications-of-flutter-in-fintech/">Flutter.</a> Wonder how?&nbsp;&nbsp; Our engineer, <a class="link" href="https://www.linkedin.com/in/nandhakumar-k-14828813a/">Nandhakumar Krishnan,</a> delves deep into the step-by-step implementation of the Verhoeff algorithm in Flutter, which guarantees the authenticity of these crucial identification numbers. &nbsp;&nbsp; Before we embark on the journey, it's important to understand the relationship between Aadhaar numbers and Verhoeff algorithm.&nbsp;<h2 class="heading-node" id="vuzgmdwit" style="text-align: justify">Aadhaar Number and Verhoeff Algorithm</h2>Aadhaar numbers are generated by the Unique Identification Authority of India (UIDAI) and are linked to an individual's biometric and demographic information, including fingerprints, iris scans, and photographs.&nbsp;The Aadhaar number comprises 12 digits, out of which 11 digits are uniquely generated, and the last digit is the checksum.&nbsp;&nbsp; The checksum is derived from the Verhoeff algorithm using a series of mathematical calculations. The result of these calculations is used to determine the appropriate checksum digit. By appending the checksum digit to the 11-digit portion of the Aadhaar number, the Verhoeff algorithm enables easy detection of errors or discrepancies that occurs during data entry or transmission. If any of the digits are altered, the resulting Aadhaar number will fail the checksum validation.&nbsp;<h2 class="heading-node" id="ba2ymaxxe" style="text-align: justify">How to Implement the Verhoeff Algorithm?</h2>To begin implementing check digit algorithms, it is necessary to create an abstract class as a foundation for the process. This abstract class will serve as a basis for incorporating the Verhoeff algorithm and its functionality within the code.&nbsp;<h3 class="heading-node" id="ofatx47uq" style="text-align: justify">The abstract class&nbsp;&nbsp;</h3><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-15-1.webp" alt="M2P Fintech" title="" width="100%" height="329"><ul class="list-node" id="vybjsesus"><li>In order to proceed, it is important to consider the multiplication table, permutation table, and the inverse table.&nbsp;</li><li>This table is based on multiplication in the dihedral group D5 and is simply the Cayley table of the group.&nbsp;</li></ul>Note: This group is not commutative, i.e., for some values of j and k, d(j,k) != d(k, j).&nbsp;<h3 class="heading-node" id="34hzoigau" style="text-align: justify">The multiplication table&nbsp;</h3><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-16-1.webp" alt="M2P Fintech" title="" width="100%" height="329"><ul class="list-node" id="vjitqhkix"><li>In the inverse table, ‘inv’ represents the multiplicative inverse of a digit, i.e., the value that satisfies d(j, inv(j)) = 0.&nbsp;</li></ul><h3 class="heading-node" id="hou5ebcnk" style="text-align: justify">The inverse table</h3><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-17-1.webp" alt="M2P Fintech" title="" width="100%" height="91"><ul class="list-node" id="oyyt75fzn"><li>In the permutation table, p applies a permutation to each digit based on its position in the number.&nbsp;</li><li>p(pos,num)&nbsp;</li><li>This is a single permutation (1 5 8 9 4 2 7 0)(3 6) applied iteratively; i.e., p(i+j,n) = p(i, p(j,n)).&nbsp;</li></ul><h3 class="heading-node" id="avp8mfh7v" style="text-align: justify">The permutation table&nbsp;</h3><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-18-1.webp" alt="M2P Fintech" title="" width="100%" height="284">Next, we must compute the Verhoeff checksum formula.&nbsp;<h3 class="heading-node" id="tl7qvwiot" style="text-align: justify">Generating the checksum formula</h3><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-19-2.webp" alt="M2P Fintech" title="" width="100%" height="616"><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-27.webp" alt="M2P Fintech" title="" width="100%" height="556"> &nbsp; The above snippet generates a checksum for the given Aadhaar number. The validate function then verifies that the checksum matches the last digit of the Aadhaar number. If they are the same, then the Aadhaar number is considered valid.&nbsp;<h2 class="heading-node" id="kgk26r6mb" style="text-align: justify">Implementing the Verhoeff Algorithm in Flutter&nbsp;</h2>To implement the Verhoeff algorithm in your Flutter application, follow these steps:&nbsp; Step 1: Import the Verhoeff algorithm class&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/06/MicrosoftTeams-image-28.webp" alt="M2P Fintech" title="" width="100%" height="162">Step 2: Validate and check the digit of the user provided Aadhaar number Note: Ensure that the user inputs a number without any spaces or characters.&nbsp; The Verhoeff algorithm computes the checksum and validates the input Aadhaar number.&nbsp;&nbsp; If the computed checksum matches the last digit of the Aadhaar number, it means that the number is validated.&nbsp;<h2 class="heading-node" id="vill8wfzc" style="text-align: justify">Indispensable Layer of Security&nbsp;</h2>The Verhoeff algorithm prevents manual errors and ensures the integrity of Aadhaar numbers. This implementation adds an extra layer of protection and reliability when handling Aadhaar numbers, contributing to the overall authenticity of this vital identification system.&nbsp; The use case of the algorithm is not limited to Aadhaar numbers alone. It can be used to validate credit card numbers, phone numbers, and product codes, making it an essential tool in today's data-driven world.&nbsp; Want to know about Aadhaar validation and masking?&nbsp;&nbsp; Get in touch with us at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>&nbsp; <a class="link fui-Link ___1qmgydl f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh ftqa4ok f2hkw1w fhgqx19 f1olyrje f1p93eir f1h8hb77 f1x7u7e9 f10aw75t fsle3fq" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. 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Validate Aadhaar numbers using the Verhoeff Algorithm in Flutter

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/EDO-suite-Banner-1.webp" alt="M2P Fintech" title="" width="100%" height="612">Does your organization collect or store Aadhaar numbers?&nbsp;&nbsp;Then you are at high risk.&nbsp;&nbsp;With identity thefts, data breaches, and cyber fraudsters on the rise, businesses are vulnerable to financial and reputational damage. While conducting <a class="link" href="https://m2pfintech.com/blog/know-your-customer-kyc-the-need-for-authentication/" target="_blank" rel="noopener">digital KYCs</a> that involve Aadhaar card verification, the risk of data exposure and misuse of customer/employee information by fraudulent entities is even greater. These privacy concerns and security breaches cost businesses billions in losses.&nbsp;Thus, it is imperative for organizations to follow strict security protocols for Aadhaar card verification. Complying with the Aadhaar masking mandates of regulators such as UIDAI, RBI, SEBI, and IRDAI, is vital to protect Aadhaar data.&nbsp;<h2 class="heading-node" id="ah6szvxl9" style="text-align: justify">What is Aadhaar Masking?</h2>Aadhaar masking is a critical security directive issued by the UIDAI and regulatory bodies to protect Aadhaar data and prevent identity fraud and data scams. According to this mandate, the first 8 digits of your Aadhaar card number must be replaced by asterisks and appear as “XXXX-XXXX”, while the last 4 digits shall remain as it is. Aadhaar card masking serves as an extra layer of protection to conceal and protect sensitive information.&nbsp;&nbsp;<h2 class="heading-node" id="wnfhl36ra" style="text-align: justify">How Aadhaar Masking Came into Prevalence?&nbsp;</h2>According to the <a class="link" href="https://uidai.gov.in/images/news/Judgement_26-Sep-2018.pdf" target="_blank" rel="noopener">Supreme Court of India’s judgment in 2018</a> on Aadhaar privacy concerns, “No entity, including a requesting entity, which is in possession of the Aadhaar number of an Aadhaar number holder, shall make public any database or record containing the Aadhaar numbers of individuals, unless the Aadhaar numbers have been redacted or blacked out through appropriate means, both in print and electronic form.”&nbsp;&nbsp;The UIDAI stipulated that no entity could save Aadhaar numbers in their database in any form (physical or virtual). However, the entity can and must mask the first 8 digits before storing any physical or virtual copy of the Aadhaar cards.&nbsp;Apart from the above regulators, the <a class="link" href="https://www.lifeinscouncil.org/component/cir_020_29.01.2019.PDF" target="_blank" rel="noopener">IRDAI,</a> <a class="link" href="https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=11566" target="_blank" rel="noopener">RBI,</a> <a class="link" href="https://www.sebi.gov.in/legal/circulars/apr-2020/clarification-on-know-your-client-kyc-process-and-use-of-technology-for-kyc_46565.html" target="_blank" rel="noopener">SEBI,</a> and The Ministry of Finance also came out with their mandates to cloak the Aadhaar numbers. &nbsp;<h2 class="heading-node" id="lmvf8p2ze" style="text-align: justify">Why Aadhaar Masking?&nbsp;</h2>Following the regulations and judgments, the regulated entities in India must use only masked Aadhaar numbers in their existing databases and can accept only masked Aadhaar cards going forward. This could be the only way to reduce identity theft while ensuring compliance and data safety.&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/EDO-suite-masking-1.webp" alt="M2P Fintech" title="" width="100%" height="612">Organizations that fail to mask Aadhaar cards will face severe consequences in the form of penalties, reputational damage, additional audits, imprisonment, and/or even complete shutdown. Hence, being agile and staying up to date with regulatory requirements is crucial.&nbsp;&nbsp;<h2 class="heading-node" id="jev9xd6hg" style="text-align: justify">How can Businesses Optimize and Automate Aadhaar Masking?&nbsp;</h2>Businesses today find it challenging to address the operational aspects of compliance and data handling. Masking large chunks of Aadhaar card data accurately requires immense manpower, time, and cost. There is also a huge dependency on humans and could be prone to errors.&nbsp;Using a robust Aadhaar masking tool is a great way to optimize the process and drive efficiencies.&nbsp;Our EDO Suite helps businesses automate the task of Aadhaar masking in no time while ensuring accuracy and zero errors.&nbsp;&nbsp;<h2 class="heading-node" id="lnv5j9vro" style="text-align: justify">What is EDO Suite?&nbsp;</h2>Powered by AI and ML, EDO Suite is an efficient Aadhaar masking tool that intelligently detects and masks Aadhaar data instantly. It enables your organization to be 100% compliant with UIDAI and RBI regulations without any hassles.&nbsp;&nbsp;EDO suite’s instant masking feature covers up the first 8 digits, revealing only the last 4 instantaneously. It is capable of analyzing and masking only valid Aadhaar numbers from a group of random numbers.&nbsp;To ensure over 98.3% accuracy, the EDO suite employs the Verhoeff algorithm.&nbsp; A checksum formula for error detection, the Verhoeff algorithm is used to eliminate errors in data entry and validate Aadhaar numbers.&nbsp;&nbsp;EDO can be deployed entirely in-house at a very low cost, with no intervention or reliance on third-party algorithms. Till date, we have processed more than 10 crore Aadhaar numbers in multiple formats.&nbsp;<h2 class="heading-node" id="nb1rdh0io" style="text-align: justify">Key Components of EDO&nbsp;</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/EDO-suite-masking-2-1.webp" alt="M2P Fintech" title="" width="100%" height="612">EDO Scan&nbsp;A smart tool that can scan the entire computer or server and mask all Aadhaar cards to provide detailed scan reports. This is primarily used for ‘Legacy Data Masking’.&nbsp;&nbsp;EDO Lens&nbsp;A camera SDK that can be integrated into any customer onboarding mobile solution and the Aadhaar number will be masked in real-time while capturing the document.&nbsp;EDO Connect&nbsp;Powerful APIs where an entity can send an Aadhaar image, and EDO Connect will return a masked Aadhaar.&nbsp;<h2 class="heading-node" id="tfbc1m9vh" style="text-align: justify">How Does EDO Work?&nbsp;</h2>EDO provides two primary services.&nbsp;<ul class="list-node" id="73uyxx4vs"><li>Legacy Data Masking&nbsp;&nbsp;</li><li>New Data Masking&nbsp;</li></ul>Legacy Data Masking&nbsp;Legacy data is consumer data that companies have already collected in the database since the issuance of the Aadhaar cards in 2010. EDO helps in masking those legacy data in a matter of seconds.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/EDO-suite-masking-3.webp" alt="M2P Fintech" title="" width="100%" height="612">New Data Masking&nbsp;The new data is the real-time consumer data that is collected and added to the database. New Aadhaar data being added to the database can also be masked before storage.&nbsp;&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2023/01/EDO-suite-masking-4.webp" alt="M2P Fintech" title="" width="100%" height="612"><h2 class="heading-node" id="h237hl4pi" style="text-align: justify">Aadhaar Masking Made Quick, Simple, and Convenient</h2>EDO caters to a business’s Aadhaar masking needs with simple, transparent pricing, and best-in-class technology. It is well-suited for both on-premise and cloud model.&nbsp;&nbsp;Features and Benefits&nbsp;1. Supports multi-format masking &nbsp;<ul class="list-node" id="p5pg7p1v9"><li>First eight digits of the Aadhaar with a red strip and ‘XXXX-XXXX' in excel sheets&nbsp;</li><li>Multiple Aadhaar numbers on the same page/image&nbsp;</li><li>Aadhaar numbers in different formats/files&nbsp;&nbsp;&nbsp;</li><li>Only Aadhaar numbers in an image with a foreign object. For e.g., an Aadhaar card with a mouse/pen&nbsp;</li></ul>2. Won't mask non-Aadhaar numbers&nbsp;3. Seamless masking with multiple options<ul class="list-node" id="trs6hfopa"><li>Full Detection - Scans the entire system&nbsp;</li><li>Choose Folder – Scans only a specific folder&nbsp;&nbsp;&nbsp;&nbsp;</li></ul><ul class="list-node" id="469pjy9v3"><li>Instant Masking - Masks any single image&nbsp;</li><li>Auto Scan - Sets the time for automatic masking of the entire system or a specific folder&nbsp;</li></ul>4. Detects and masks the selected files in order to thoroughly analyze dupes, non-Aadhaar numbers, and formats&nbsp;5. The detection results are made available as downloadable reports&nbsp;6. Cancels non-Aadhaar data and provides date, scan IDs, time stamps, and status (canceled/completed)&nbsp;Ready to mask Aadhaar in an instant, the right way?&nbsp;&nbsp;Connect with our expert team at <a class="link" href="mailto:business@m2pfintech.com">business@m2pfintech.com</a>.&nbsp;We’ll be glad to reach out and get you the best-in-class Aadhaar masking solutions right away!&nbsp;<a class="link" href="https://m2pfintech.com/newsletter/" target="_blank" rel="noopener">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/" target="_blank" rel="noopener">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech" target="_blank" rel="noopener">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

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