KYC Full From is “Know You Customer”. KYC is a trending and modern term used in present time. Now everyone should have awareness about KYC. Today in this post we will learn about KYC full form and some basic concepts of KYC Aadhar based KYC and in person verification KYC.

Let’s start with introduction of KYC.

Frequently Asked Questions

Some frequently asked questions based on KYC are as follow-

• What is KYC Document ?
• What is KYC full Form in Bank ?
• Why is KYS used ?
• How can I get KYC Form?
• What is eKYC ?
• What are benefits of KYC ?
• What is KYC Verification Process ?
• Who are KYC Service Providers ?

After reading this tutorial students will be able to answer the above questions.

Let’s start with introduction of KYC.

What is KYC ? 

KYC is a process of authenticating and verifying a customer before allow him/her to use or grant some services. In KYC Process customer’s documents related to identity and address are used for authentication.

Once the KYC process is completed then a unique customer identification number or client number is assigned to customer.

The RBI or Reserve Bank of India has made it compulsory for all financial organizations like banks, insurances etc. ,that all the customers must verify their identity and address in order to carry out any kind of financial transaction with the financial institutions.

This was made mandatory since 2004. Hence, the KYC process is introduced by the RBI as the mode of verification of the customers for the authenticity of their identity.

KYC Full Form

KYC Full form is given below –

K stands for Know

Y stands for Your

C stands for Customer.

The name says it all. This is a process used by all the financial institutions to verify or authenticate the identity and address of the customers.

Before a customer begins investing in any financial instrument like FD, bank account, Mutual Funds etc., the customer needs to submit their KYC documentation as a proof of their identity.

What is need of KYC ?

KYC is specially needed in Bank for the following work.

• To open saving account.
• To avail benefits of fixed deposit.
• To start mutual fund
•  To use third party wallet service.

What is eKYC?

In earlier days KYC is little bit difficult. Customer need to submit hard copies of the documents and must be present physically to submit these KYC documents. To solve this issue eKYC is used.

eKYC is a paperless and completely digitized KYC verification process in which customer can complete the KYC process online. Most of the Banking Institutions
provides eKYC facility today.

Benefits of KYC

In previous section we have discussed the KYC full form now in this section we will se about various KYC benefits. Benefits of KYC are as follow –

• It becomes easy for financial institutes to understand the nature’s of customer’s activities.
• Monitoring of customer’s activities is easy and risk of money laundering cases is low.
• Reduce the risk of illegal transaction.

KYC Documents

Various documents required for KYC are as follow –

1.KYC Documents for Identity Proof

An identity card having the photo of the applicant. Keep in mind that the document needs to be issued by the State or Central Governments, their departments, or any Regulatory or Statutory bodies. Following Documents are considered.

• The UID mentioned on Aadhar card.
• Voter ID, passport, or driving license.
• PAN card with their photograph

2. KYC documents for Address Proof

KYC Documents that can be considered as Address Proof are as follow –

• Voter’s card/Passport/Driving License/ Registered Sale Agreement or Lease on one’s residence/Maintenance bill for one’s flat/Copy of an insurance.
• Bills for utilities are also considered valid address proof for KYC. This Bills includes one’s electricity or gas bill, their telephone bill, and their bill for water consumption. Keep in mind that these bills must not be more than three months old.

Note – Read Here to Know More about Aadhar Card

Types of KYC

There are mainly two types of KYC verification processes that are carried out by the financial institutions at present. Those are as follows-

1. Aadhaar based KYC

Aadhaar based KYC is a customer verification process which can be carried out online through the portal of financial institution.

This is quite convenient for those people who are having an internet connection. Here the customer has to provide a scanned copy of his/her original aadhaar and then can invest in any kind of financial instrument.

2. In Person Verification KYC

If someone can’t carry out an online verification process, he can also provide his original as well as photocopy of his documents to the financial institution by himself.

Here the customer can provide any kind of identity proof and address proof like PAN, AADHAAR, Voter ID etc. for the authentication process.

Conclusion and Summary

I hope after reading this tutorial you will are able to answer the query related to KYC such as KYC Full Form , KYC Documents, benefits of KYC , eKYC , KYC Process and types of KYC.