Background verification is the check that an employer runs on a selected candidate before the start date, to confirm their identity, degree, past jobs and criminal record. It is also called background screening, a background check or BGV. In India, it usually starts when the candidate accepts the offer, and the offer is conditional on a clear result.
The checks are of four kinds. The identity check confirms that the candidate is who they say they are. The education check confirms that the university actually awarded the degree. The employment check confirms that the candidate really worked at each past company, in the role and for the dates on the CV. The criminal record check searches court records for cases against the candidate. Some employers also check the home address and run a drug test.
These are the same document and face checks that a bank runs on a new customer for KYC. The difference is the purpose. KYC is required by law before a bank opens an account. Background verification is chosen by the employer, to avoid hiring someone who lied on their CV.
Here is a typical case. A logistics company in Ahmedabad selects a candidate for an accounts manager role. The recruiter marks the candidate as selected in the applicant tracking system. The ATS starts a check on a verification platform. The candidate receives a link on their phone and gives consent. They photograph their PAN card and take a selfie. Identity verification software confirms that the PAN card is genuine and that the face matches. With the candidate's consent, the platform fetches the degree certificate from DigiLocker, the government's online store of official documents. The platform emails the past employer's HR team to confirm the dates and the role. It also searches court records in the districts where the candidate has lived.
The digital checks finish in minutes. The employment check can take several days, because it depends on a reply from the past employer. A court record check can also take a week or more when a person has to visit the court. The final report marks each check as clear, or as needing review.
American screening companies grew up on phone calls to universities and visits to courthouses, so their checks take days. Indian platforms use Aadhaar, PAN and DigiLocker, so many checks take minutes. Once the report is clear, the HRIS and payroll system creates the employee record. A lender checks something similar later, when the employee applies for a loan, through income and employment verification.