Banking Awareness

Know Your Customer

 Banking Awareness
Know Your Customer

Know Your Customer

KYC means Know Your Customer and sometimes Know Your Client. KYC or KYC check is

the mandatory process of identifying and verifying the client's identity when opening an

account and periodically over time. In other words, banks must make sure that their clients

are genuinely who they claim to be.

It is a mandatory verification procedure carried out by banks, financial institutions, and other

Indian organisations to minimize illegal activities like money laundering.

Opening a bank account, mutual fund account, bank locker, online investing in the mutual

fund or gold, your KYC should be updated with the bank.

Establishment: 2002

Documents required for KYC:

● Photo Identity Proof

● Address Proof

"Officially valid document" (OVD) for KYC includes the

a) Passport

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 Banking Awareness
Know Your Customer

b) Driving license

c) Permanent Account Number (PAN) Card

d) Voter’s Identity Card issued by the Election Commission of India

e) Job card issued by NREGA duly signed by an officer of the State Government.

f) Letter issued by the Unique Identification Authority of India containing details of name,

address and Aadhaar number

Types of KYC Verification:

Aadhar-Based KYC: Aadhar-based KYC is a verification process that can be carried out

online, making it highly convenient for those with an internet connection. With Aadhar-

based KYC the opportunity to do so is only up to Rs.50,000 a year.

In-Person Verification KYC: If one wishes to invest more in mutual funds per year, they will

be required to carry out an in-person verification KYC.

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