KYC

What is KYC?

Short for ‘Know Your Customers’ or ‘Know Your Client’, it is a regulated documentation process for verifying a person’s identity. It is also a process by which banks and businesses verify the customers’ suitability and potential risks to the businesses involved due to the business relationship.

Points to Remember

  1. KYC allows banks and companies to legally conduct business and prevents or eliminates any possibility of financial crimes against the organisation
  2. Almost all banking or online payment systems across the country mandate a KYC verification before you can use their services

What Are KYC Documents?

After knowing the meaning of KYC, you must know the documents you can submit. Here’s an overview:

For Identity Proof

  • Aadhaar card
  • PAN card
  • Voter’s ID card
  • Driving licence
  • Passport
  • Bank statement 
  • State or Central Government issued document bearing a photograph 
  • Any identity card issued by the college, commercial banks, public sector undertakings, Bar Council, etc. 
  • ICWAI, ICAI, ICSI, etc., issued identification document

For Address Proof

  • Aadhaar card
  • Voter’s ID card
  • Driving licence
  • Passport
  • Registered Sale Agreement
  • Utility bills such as gas, telephone, water consumption bill etc. 
  • Documents issued by ICWAI, ICAI, Bar Council, ICSI, etc. for students

Note that these requirements depend on the institute conducting the verification process. For instance, some may accept Aadhaar as ID proof while some may not. Check and confirm the valid documents in advance.

Importance of KYC

There are two reasons why the whole process is crucial: 

  • It can help institutions evaluate potential risks and act accordingly
  • It is mandatory and not complying with it can result in penalties
  • It can help prevent fraud, money laundering and other financial crimes

FAQs on KYC 

What are the requirements for KYC verification? 

You must submit the required identity and address proof and the duly filled KYC form at your nearest KYC registration agency. After you’ve completed this, biometric scans will conclude the process. 

How do I check my KYC details? 

You can check the details on the official KYC Registration Agency websites.

What are KYC documents?

Any document that verifies your identity and address can be a KYC document. 

How can I check my KYC online?

You can go to any of the following KYC Registration Agency websites and enter the details to check your KYC status:

  • CDSL Ventures Ltd (CVL)
  • NSDL Database Management Limited (NDML)
  • National Stock Exchange
  • CAMS Investor Services Private Limited
  • Karvy Data Management Services Limited (KDMS)
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