With instances of identity thefts becoming commonplace, it has increasingly become important for businesses to perform identity verification on all their customers. This includes demanding valid identity proof as well as address proof. In a country like India, where just 10 percent of the population has valid credit scores, it is a necessary step for every business to determine their paying attitude. Know Your Customer (KYC) and making it mandatory for people to link their Aadhaar with bank accounts and phone numbers are popular steps that are enforced to ensure that no frauds occur.

However, we all know that a large portion of the rural population in India lacks access to financial institutions like banks, and does not even own mobile phones. Yet, they still need monetary aid like loans. Moreover, ID proofs like Aadhaar, even though it is widely used and easily available in urban areas, are still not available in some parts of the country. And many times, ID proofs like a voter’s ID are not always sufficient. More often than not, many businesses require additional documents like utility bills to verify the address and financial condition of an individual. NBFCs are using utility bill verification as a part of the KYC process to support the unbanked rural population across the country. So, it appears that for India, utility bill verification is the most pragmatic approach for businesses to undertake when it comes to verifying not only the identity and address of customers but their paying attitude and capability too. And since an electricity bill is the one document that most people are likely to have, an electricity bill verification is the most convenient and reliable proof that customers can submit, especially in rural areas. Besides, for businesses, not only does this help in mitigating risks, it strengthens the relationship they share with their customers. It also proves to customers that they are a company that genuinely cares about a safe and secure business procedure and such practices like electricity bill verification establishes them as brand people can place their trust in. With increasing pressure and regulations from the central government for businesses to perform identity authentication on customers to prevent any identity theft or fraud, an electricity bill verification can provide much-needed help to document customer details.