KYC is the abbreviation of Know Your Customer. Financial institutions such as banks and Non-Banking Finance Companies (NBFCs) have mandated KYC regulations before providing any financial service to customers.
For most financial transactions, your KYC details will be required. Be it opening of a new bank account or applying for a credit card you will be required to provide for KYC.
e-KYC or KYC online is an effective way to submit your identity and address proofs online. KYC itself is a standardised way to check the authenticity of customers on a portal by the Indian government.
The full form of KYC is ‘Know Your Customer’ It is a verification process, officially mandated by the Reserve Bank of India, that allows an institution to confirm and thereby verify the authenticity of their customer.
KYC or ‘know your customer’ is a mandatory verification procedure carried out by any banks, financial institutions, and other Indian organisations with the goal of minimising illegal activities like money laundering.
Since the year 2004, RBI or India's Reserve Bank has made it compulsory that all Indian financial institutions, banks, and other financial organizations verify both the identity and address of all customers who are to carry out any kind of financial transactions with them
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