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Saturday, August 25, 2018

What Is KYC | Why KYC Important?

What Is KYC | Why is KYC important?

Hii Friend's Today we will talk about What Is KYC | Why KYC Important?

What Is KYC | Why KYC Important?

Banks and Financial Institutions use KYC to verify the identity and address of their customers. KYC stands for Know Your Customer.

KYC is a popular term used in the field of banking and finance. Banks and Financial Institutions use KYC to verify the identity and address of their customers. KYC means Know Your Customer - that's your customer.

The government has validated six types of documents for identifying the person as a certified document for KYC, which is considered as proof of the identity of the person. If you have once deposited the KYC document in the bank, then the same bank can ask for these documents to update the KYC record again after a certain time to ensure your identity. This is a continuous effort to investigate the bank's account.

Here is the need of KYC


KYC is required to open a bank account, buy mutual fund accounts, bank lockers, and online mutual funds and invest in gold.

Based on these documents the identity of the person and his address can be verified


Passport, Driver's License, Voter ID Card, PAN Card, NRGA Card and Aadhar Card
You are required to give one of these documents to verify your identity.
If there are details of your address along with these documents, then it will be treated as proof of address.
If you can not prove the exact address of your residence, then it is important that you give another legal document in this regard.
Address proof

The letter sent by consumer bank like telephone bill, refilling bill of electricity or gas, passport, bank account statement sent by mail, ration card, appointment letter issued by the employer, bank manager of commercial banks.

Why is KYC important


KYC is very important for banks and financial institutions because through this method, the person's application and identity are ensured and it becomes convinced that whatever documents have been given, they are genuine. There have been many such cases, in which money was withdrawn from fraud by fraudulence and fraud. If the identity of the applicant is ensured, then the possibility of forgery can be reduced and it can be stopped.

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