The RBI originally introduced KYC standards in India in 2002, and it became an obligatory practice for all banking institutions in 2004.
KYC, or Know Your Customer, is the procedure of identifying a customer to detect and prevent fraud in financial transactions. KYC is required since it is a legally binding process that all financial institutions must follow. What are the different kinds of KYC? Some institutions use e-KYC verification online. Submit a copy of your authentic Aadhaar card to the institution's website to verify yourself. This is the electronic equivalent of knowing a customer. Another way to get to know your customer is to visit them and confirm their information. This procedure can also be carried out by requiring the customer to call the bank or broker's office with his PAN Card and Aadhaar Card. Let's go on now that we've thoroughly grasped the concept of "what is KYC?" This article will explore the most often used KYC types and their accessibility to financial institutions, and the compliance measures that surround each of them.
KYC, or Know Your Customer, refers to the process of identifying a customer to detect and prevent fraud in financial transactions. KYC is essential since it is a legally binding process that all financial organizations must follow. Some institutions use online e-KYC verification, while others require a face-to-face meeting with the customer.
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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. |