26 Dec 2021 | 5 min read
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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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.
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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).
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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.