KYC is an abbreviation of Know Your Customers. It is essentially the process to confirm the character and the location of the clients or customers. Numerous institutions like banks, insurance agencies, and other monetary institutions request KYC. The Reserve Bank of India has made it obligatory for banks and other monetary institutions to do the KYC formalities before they manage any sort of exchange with their clients. The KYC process validates the client's personality and address and the confirmation is done through the documents given by the clients. You can explore the documents required for KYC and any sort of KYC Compliance goes under the Prevention of Money Laundering Act 2002.
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List of KYC Document
The Government of India has mandated specific documents that can be valid documents for the KYC. You should introduce those documents to the institutions for finishing the KYC process. Then again, your document should prove your Identity and your Address.
Proof of Identity
- Unique Identification Number (UID, for example, Aadhaar, Passport, Driving license, and Voter ID card
- Pan Card
- Document with your photograph, given by any Statutory/Regulatory Authorities, Central/State Government, and their Departments.
- Identity cards are given by Scheduled Commercial Banks, Public Sector Undertakings, and Public Financial Institutions.
- Identity cards given by Colleges, partnered to Universities, Professional Bodies including ICAI, ICWAI, ICSI, and Bar Council to their Members
Proof of Address
- Identification, Voters Identity Card, Registered Sale or Lease Agreement of Residence, Ration Card, Driving License, Insurance Copy or Flat Maintenance bill
- Utility bills, for example, Landline Telephone Bills, Gas bill or Electricity bills (not over 90 days old)
- Bank account statements or Passbook entries (not over 90 days old)
- Self-declaration by the Supreme Court and High Court judges, which determine their new location
Evidence of home given by any of the accompanying bodies:
- Bank Managers of Scheduled Commercial Banks
- Multinational Foreign Banks
- Scheduled Co-Operative Bank
- Elective representatives for the Legislative Assembly
- Gazetted Officer
- Notary public
- Documents gave by any Government or Statutory Authority
- Identity card or documents with a location that are given by the Central or State Government and their Departments, Statutory or Regulatory Authorities, Scheduled Commercial Banks, Public Sector Undertakings, Public Financial Institutions, and Colleges associated to Professional Bodies like ICAI, ICWAI, Bar Council and ICSI to their Members.
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Types of KYC in India
Generally, every one of the organizations has two kinds of verification process and you can see them below:-
In the online-based KYC method, the bank or the monetary institution confirms its clients carefully. You will simply need to download the KYC form and fill in the important details as per your documents. Then, you will have to transfer a copy of the documents you have mentioned in the form. When you present every one of the documents, the bank or the foundation confirms the client's details, and the KYC process gets finished. The web-based KYC is otherwise called eKYC.
In the offline KYC, one of the bank's delegates meets the individual and afterward checks every one of his documents. He can request a copy of the documents and afterward verify your profile. This process of KYC Verification is otherwise called In-Person-Verification (IPV).
How to do KYC?
- Step 1: Download the KYC Form of the respective institution whether a bank or any monetary institution from their official site.
- Step 2: Fill in your details like your Name, Date of Birth, Address, and the details of the supporting documents.
- Step 3: Attach the physical copies of the documents you have mentioned in the KYC Form.
- Step 4: Ensure that copies are verified by you.
- Step 5: Present every one of the copies of the supporting documents with the KYC form to the organization and your KYC Process will be finished.
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Lastly, KYC is a significant process that guarantees every single financial transaction and purchase is authentic while helping control monetary frauds, black money, and money laundering. The process is amazingly straightforward and speedy and is required as per the government regulations.