International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 09 Issue: 07 | July 2022
p-ISSN: 2395-0072
www.irjet.net
KYC VERIFICATION USING BLOCKCHAIN Tushara Sasi1, Sunitha N V2, Shriraksha Bhat3, Sandhya H N4, P Ashwini5 1,3,4,5 Dept.
of Computer Science and Engineering, Mangalore Institute of Technology and Engineering, Moodbidri. Professor, Dept. of Computer Science and Engineering, Mangalore Institute of Technology and Engineering, Moodbidri. ---------------------------------------------------------------------***--------------------------------------------------------------------2Assistant
Abstract - KYC (Know Your Customer) is a requirement set
secure database. To gain access to the details, the bank must first obtain the user's permission. It is up to the user to approve or deny the bank's request to access the KYC details. We eliminate third-party intervention by giving the user control over his data.
forth by the Reserve Bank of India as a way for institutions to confirm and subsequently confirm the legitimacy of consumers. Before investing in a range of financial instruments, they must submit their KYC papers to prove their identity and address. The costly and time - consuming Know Your Customer (KYC) process is now an important yet trivial issue in the financial sector. Customers must go through the same procedure for any bank or financial institution they desire to cooperate with, which makes the process tedious for them as well. The amount of time it takes depends on how each person uses the method, so a time-saving alternative is necessary. This paper aims to provide a solution to this issue. We put forth a solution based on blockchain which performs single KYC verification and maintains a single secure database, eliminating the need for multiple KYC checks. Only with the user's permission will various financial institutions present on the blockchain network be able to access the user's KYC information. Since the user has control over the data, we even do away with third-party intervention. It is up to the user to accept or reject the bank's request to view their KYC information. Financial institutions would be able to produce better compliance results, boost efficiency, and enhance customer experience by sharing KYC information on Blockchain.
2. RELATED WORK A method based on distributed ledger technology was proposed by Bharti Pralhad Rankhambe et al. [1] with the aim of lowering overall KYC expenses for banks cooperating in a regulatory authority while avoiding redundant tasks performed by different financial institutions. The proposed system enhances effectiveness, drastically lowers costs, and increases transparency throughout the integration of customer records into the bank database, enhancing customer satisfaction by removing the need for middlemen. Any firm can request the data by submitting a service proof of identity using the consortium blockchain approach proposed by Ashok Kumar Yadav et al. [2].Every organization receives an identity to keep track of the record. Due to data being saved online on the blockchain, maintenance costs associated with duplicate information will also be eliminated, and paperwork will be significantly reduced. The proposed approach to KYC verification optimizes data storing, updating, sharing, and accessing processes while enhancing security, transparency, and privacy. It does this by utilizing the DLT, cryptography, and consensus mechanism of blockchain. Additionally, it increases customer ownership and enriches the customer experience. Every institution that is acting as a peer in a consortium network under the proposed approach is only able to verify the details, not modify them. Finally, while internal operations inside each business are spread, they appear to be one cohesive unit from the outside.
Key Words: Blockchain, KYC Verification, Financial Institution, Customer, Bank
1. INTRODUCTION KYC is the process by which banks gather information about the customers' identities and addresses. Due diligence is a process that is supervised by regulators that is used to confirm the legitimacy of clients. This process aids in preventing the exploitation of banks' services. The KYC process must be completed by the banks when opening new accounts. Additionally, banks are expected to routinely update the KYC information for their clients. Traditional KYC's main drawbacks are that it is manual, time-consuming, requires third-party involvement, and is redundant across institutions. We intend to overcome these drawbacks with our proposed blockchain-based approach. We intend to simplify the KYC verification process by allowing banks to perform a one-time KYC check that can be accessed by multiple financial institutions via the blockchain network. We even eliminate the need for redundant KYC checks, which saves time. Over the blockchain, we maintain a single
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E. Sai Vikas Reddy et al. [3] proposed an approach based on blockchain technology that lowers the expense of the standard KYC verification process. Regardless of the number of institutions each customer registers, the entire verification procedure is only performed once for each of them, boosting transparency by safely communicating the results through DLT. Here, the customer only registers with one financial institution, decreasing the need to register with various financial institutions and eliminating duplication of effort. With this approach, ethereum is used for proof of
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