What is the full form of KYC?
Table of Contents
The full form of KYC is Know Your Customer or Know Your Client.
What is KYC?
KYC is the process in which of verifying the document linked to the identity and address of customer before allowing then to avail any services. Once the kyc is done, an antique number /code is assigned by the Central KYC Records Redistrt known as the Know your Customers/ client identifier.
As per RBI, the KYC process has been initiated in accordance with the prevention of Money Laundering Act 2002.After this, RBI has mandatory to all financial institutions to conduct KYC check for all their new and existing customer.
Need for KYC:
KYC is needed to conduct any kind of Finacial transaction meaning if you want to.open a savings bank account avail the benefit of a fixed deposit (FD) and third party wallet and mutual fund transciation , you would need to complete the KYC process.
Benefits of KYC:
1. maintain the identity of customer.
2. Help understands the nature of financial activities of a customer.
3. monitors the activities of customer that help to reduce the risk
4. safe to losses and frauds that may arise from illegal transactions.
How does KYC work?
In KYC verification, the ID verification of customer, face verification, document verification and biometric verification. Once you complete the different verification processes and sumbit essential documents through either online or offline method, and get your KYC approval .after that you can carry any type if transaction.
Steps in KYC verification:
1. Aadhar OTP-based Online KYC-
Aadhar OTP based KYC online verification can be done by following the process mentioned below:
Step 1: visit the website of a bank, KYC Registration Agenct,or fund house.
Step 2: Create your account by providing personal details.
Step 3: Enter your Aadhar number and registered mobile number.
Step 4: Enter the OTP.
Step 5: prepare a self attested copy of your edits Aadhar and upload it.
Step 6: Accept the declaration forms.
2. Aadhar-based biometric Authentication:
Step 1: visit the website of a bank, KYC registration Agenct, or fund house.
Step 2: follow the steps of Aadhar OTP based online KYC as stated above.
Step 3: choose the online biometric Authentication option.
Step 4: An authorized representative will visit the given address to take your biometric.
Step 5: wait for your KYC Approval
3. KYC verification offline in bank:
Step 1: Download the KYC Form the website of Bank, or fund agency.
Step 2: filling the form and mention the Aadhar card number and pan details.
Step 3: Attach identity proof and address proof along with the application.
Step 4: visit the nearest KYC Registration Agenct office
Step 5: Sumbit the application form to an exceutive present there.
Step 6: once the kyc form is submitted, you will get an application number. You can use this number to Chace the status of KYC verification.