Importance of Having KYC Documentation in Financial Institutions

KYC is also called "Know your Customer" and is an essential process carried out by India's banks and other financial institutes. KYC documentation may include different identities such as the Aadhaar card, Permanent Account Number, and also other residential proofs. 
Other essential documents are submitted in the process by the customer in the banks, which enables them to know their customer and further help them out with their unique plans accordingly.

Why is KYC so Important?
These days you cannot communicate and open a savings or current account with the national banks if you don't have your KYC done. 

• The reason why it has become so important is the fact that it also gives the bank the accurate status of an individual regarding legal issues and more such complications, which protects them from significant financial frauds and more. 
• It also helps to avoid different penalties and cases such as money laundering and more.
• The KYC also provides information to the bank that eventually helps them put their customers in different categories. This helps them frame and invite their customers to be part of different government and other special bank schemes.
• The KYC gives a unique identity to its customers.

​E-KYC 
These days, the world is dependent on technology and the virtual world of the internet for most of the work. Even banking has become very easy with the advancement in technology. With the development of e-KYC verification online banking methods, things have become very easy.

The benefits of e-KYC

• It gives an easy method of verification without physical contact.
• The step is more efficient and fast as it can be done with multiple handy devices such as laptops and mobiles.
• It is more accurate as methods like biometric verification, and more such accurate data could be registered.
• KYC documentation is straightforward with the online process.

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