KYC stands for Know your Customer. It is a term related to Business » Business Terms, Useful Terms and Definitions which we use in daily life but we do not know their full name, Here’s a list of important abbreviations that you should know.
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What is full form of KYC?
The full form of KYC is the Know your Customer.
In case you are wondering what KYC is, it is an acronym whose full form is “Know Your Customer”. KYC makes it easier for institutions to authenticate the consumer’s identity and address details.
Basically, the meaning of KYC is to establish a person’s identity and address using appropriate supporting documents including photo IDs (for example PAN cards, Aadhar cards), Personal Verification (IPV) and Proof of Address.
As explained above, KYC compliance is a mandatory exercise under the Money Laundering Prevention Act 2002. In addition, the Know Your Customer (KYC) process is broadly divided into two parts :
Part I contains the necessary KYC data on the individual as prescribed by the Central KYC Registry (known as the Single KYC)
Part II where all additional KYC information is searched separately by a financial intermediary (known as Additional KYC)
After understanding the meaning of KYC and its importance, it is important that you be aware of when KYC is required. While KYC is legally binding, completing the KYC / eKYC process also helps clients access the various premium products offered by the finance company as well as checkout faster.
KYC for banks
KYC replenishment and updates periodically vary from account to account, depending on the bank’s perception of risk. Thus, KYC becomes crucial when carrying out transactions such as opening bank accounts, making investments in permanent deposits, recurring deposits, mutual fund accounts and online investments.
KYC becomes crucial as it helps banks make sure that the claim they receive and all other details are from a legitimate customer. By ensuring the identity of the individual; therefore, banks can easily predict and prevent fraud.
KYC for investment / life insurance
KYC information becomes indispensable to ensure that insurance policy investments / purchases are made by a real person while limiting black money cases. As such, the KYC procedure is something that all life insurance and unit trust investors must adhere to through the KYC Registration Agency (KRA) following the guidelines set by the IRDAI (Insurance Regulatory and Development Authority India) and SEBI (Securities and Exchange Board of India).
KYC is essential for people looking to open a Demat and stock exchange account, bank account, permanent deposit account, buy life insurance, handle mobile wallets for digital money transfer and any other financial transaction with a registered authority.
Without KYC update, you cannot open or make any financial transactions in India.
According to the guidelines issued by the GOI, 6 documents serve as “officially valid documents (or OVD) and can be considered for identity verification. Even if you have submitted your KYC documents to the institution once, they may re-request documentary evidence to update your KYC records periodically. Below are the documents required for the KYC process:
Unique identification number (UID) such as Aadhaar, passport, driver’s license and voter ID card
An ID card or photo issued by any statutory / regulatory authority, central / state government, and their departments
ID cards issued by scheduled commercial banks, public sector corporations, and public financial institutions
Cards issued by colleges that are affiliated with universities, professional bodies including ICAI, ICWAI, ICSI and the Bar Council to their members
Passport, voter ID card, registered contract of sale or lease of residence, food card, driving license, copy of insurance or maintenance lump sum
Utility bills such as landline, gas, or electricity bills (no more than three months old)
Bank statement or bank booklet entries (not older than three months)
Self-declaration of judges of the Supreme Court and the Supreme Court that specify their new address
Proof of residence issued by any of the following authorities:
behind. Bank Manager of Scheduled Commercial Banks
b. International foreign banks
down. Planned Cooperative Bank
re. Elected representatives to the Legislative Assembly
to me. Gazeted Officer
at Documents issued by any government or statutory body
I. Identity card or documents with an address that are issued by the central or state government and their departments, statutory or regulatory bodies, scheduled commercial banks, public sector corporations, public financial institutions and colleges affiliated with professional bodies such as ICAI, ICWAI, council attorney and ICSI to its members
Here you learn the full name and complete information of Know your Customer, if you have questions and answers related to KYC, then tell us your thoughts in the comment, know the complete meaning of KYC in this article.
What’s the full form of KYC? The full form of KYC is Know Your Customer. KYC is a common term used in the banking or financial sector. KYC is a process that financial institutions must follow, through which they obtain information about the identity and address of customers.
Reserve Bank of India (RBI) has introduced a KYC obligation for all banks, financial institutions and any other digital payment companies that carry out financial transactions. Let’s take a closer look at what KYC is and the underlying KYC documents. In case you are wondering what KYC is, it is an acronym whose full form is “Know Your Customer”.
This is a process by which a company investigates its customer and tries to ensure that they do not get involved in financial fraud or money laundering. KYC policies are very important to financial firms, including banks and loan companies. What is the full form of KYC in general, banking and uncategorized? Expand the full name of KYC.