What is the full form of KYC?
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What is the full form of KYC?
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The full form of KYC is to Know Your Customer. It is a process followed by the financial and non-financial institutions to collect all the identity details of a client. KYC process also followed by all size companies to make sure about their customers, agents, consultants, or distributors are actually who they claim to be and any corruption compliments against them.
KYC process established by the Reserve bank of India (RBI) to stop fraudulent activity in financial and non- financial institutions.
Nowadays the KYC process is very important to get many
important services like an insurance policy, LPG connection, electricity connection, etc.
Objective of KYC
The main objective of KYC is to prevent financial and non- financial institutions for being used intentionally or unintentionally, a fraudulent activity like illegal transaction, money laundering, and theft identity.
Details includes in KYC
These are the following mandatory details includes in KYC process:
Customer Name
Date of Birth
Father's Name
Mother's Name
Marital Status
Address Proof
Identity Proof
Contact No
PAN Card
Source of the Funds
Passport, Voter's Identity Card, Driving Licence, Aadhaar Card and PAN Card are the documents required for an individual to update KYC. The individual has to submit any two documents as an identity proof and address proof to update KYC.
Address Proof of company, Address, and Identity proof of Directors, Authorized signatories and organization proof are the documents required for companies to update KYC.
Benefits of KYC
Establishes the credibility of the customer.
It helps to prevent fraudulent activity.
It makes sure that all the transaction are legal and transparent.
It helps to stop stealing money by scammers.
It helps to avoid legal discrepancies and tax-related problems.
