Ever since 2004, the Reserve Bank of India (RBI) made the KYC compulsory in India. Yes, it’s a must for banks and other similar entities to verify the identity and address of their customers. Anyone who has to transact with banks and more has to be authenticated. It was to be done using the KYC process. What is KYC? The full form of KYC is ‘Know Your Customer.’ The KYC is a verification process that lets a bank confirm and authenticate a subscriber. It is to make sure that the address and identity of a customer match with a valid document. The document could be an Aadhaar Card, PAN Card, Driving License, Passport and more. To complete the KYC process, a customer needs to submit the KYC documents before beginning to avail of its services. Even existing customers are required to update their KYC details from time to time. It is to make sure that only legal customers are attached to a bank and the bank's services are not being used for legal/laundering activities. Nowadays, eKYC can also be done using your Aadhaar Card. It is done by using the OTP (One-Time Password) received on your Aadhaar-linked number. eKYC process is faster and is a hassle-free way to ascertain one’s identity in a flash. eKYC verification online is being conducted by most banks to save time and add more customers. What is the significance of the KYC? The importance of KYC verification is easy to understand. KYC is done to ensure that the services of a bank are being used only by genuine customers. It is to guarantee that no illegal act or laundering is being conducted by customers of banks. If you want to continue using the services of a bank and similar entities without interruptions, it becomes vital to get your KYC done. KYC could be done via in-person verification and even Aadhaar-oriented. Additional Read: Important Points About KYC Process
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |