What is KYC, and why is it necessary? What is eKYC?

Nowadays, you must have heard about KYC in many places, whether you open a bank account or buy a new SIM card. Now, it has become necessary to get KYC done everywhere.

Sometimes, this thing also becomes a headache, but what is a headache for you is very important for any bank or other company because only because of KYC, the bank or other company gets complete information about you.

Today, we will give you complete information about KYC, and we will also tell you why banks do KYC and how you can get your KYC done.

KYC (Know Your Customer) is a process through which a bank or institution verifies the identity and address of an individual. Now you can also do KYC with an Aadhar card. Through this, the bank or other company collects all the information about its customer. The complete meaning of KYC is Know Your Customer.

What is KYC?

KYC (Know Your Customer) is a process through which a bank or institution verifies the identity and address of an individual. Now you can also do KYC with an Aadhar card. Through this, the bank or other company collects all the information about its customer. The complete meaning of KYC is Know Your Customer.

Reserve Bank of India implemented KYC in 2002. KYC’s main objective is to stop the economic crimes in the country.

Whenever you open an account in a financial institution such as a bank, or stockbroker, they ask for KYC. These financial institutions give you a form in which you have to enter your name, address, phone number, bank account number, PAN card number, Aadhar card number, etc., and attach all the documents with them. This form is known as KYC.

Nowadays, KYC is mandatory in every financial institution, whether you are opening a new account or your account is already open. If you have not done KYC, then you will have to get KYC done.

For You: How to check your name on the voter list? 

What is the importance of KYC?

Getting KYC done is a must for both the customer and the financial institution.

If we see from the bank’s point of view, then with the help of KYC, banks ensure that you are using your bank account. Because sometimes, the bank account is used for criminal transactions.

If we talk about the benefit of the customer, with the help of KYC, you can keep your account updated. For example, suppose you have changed your home address, and the bank has your old address, then the bank can send your debit or credit card to the old address itself. If the bank posts something to you, then that post may go into the wrong hands, but if you do KYC of your bank account from time to time, then your address will automatically change when you enter the new address in the KYC form.

The main purpose behind implementing KYC was to prevent economic crimes, at the same time, after getting KYC done from time to time, the bank or financial institutes can check ownership. Due to this, there has been a decrease in economic crimes since the implementation of KYC. 

How to get KYC done?

If you want to get KYC done in the bank, then its process is very easy, you can get your bank account KYC done in a day.

First of all, go to your bank, ask for the KYC from there, fill it out, and submit it to the bank along with the necessary documents.

Now, the bank employees will check your documents and enter them in their database, after which the KYC of your bank account will be done.

KYC is done online, and offline as banks resort to offline KYC. Many other places where KYC is done have now shifted to the online process, but now some banks are also doing online KYC via a video call. Where you can get your KYC done on a video call.

Video Call KYC

On opening a digital bank account, there is KYC on the video call, this is also a type of KYC, but here you do not even need to take you out of the house.

On opening a digital bank account, at the time of KYC, you just have to give all your details like name, address, PAN number, and a photo will also be taken at the time of video call, after that the bank employees themselves fill all the details. After verifying, they will activate your bank account.

What is eKYC?

Apart from the bank, KYC is also done in many other financial institutions such as mutual fund companies or stockbroker companies. Although, in most places, Aadhaar based KYC is done, which is called eKYC.

Aadhar based eKYC is only online where you are asked for your Aadhaar number, and then OTP comes on your Aadhar linked phone number, which on submission will make your Aadhar based eKYC successful.

Although eKYC for sim cards is a bit different, In eKYC for sim, you are asked for your Aadhar card and your fingerprints.

How to do online KYC with an Aadhar card?

You can get your KYC approved through Aadhaar-based biometric authentication. If your KYC is done online, then you can invest Rs 50,000 per year. However, if you do your KYC through Aadhaar Biometric Authentication or offline, there is no maximum investment limit.

You need to follow the steps mentioned below for online KYC using Aadhaar Biometric Authentication: 

  • Visit the portal of any KRA or fund house
  • Do Online KYC as mentioned in the above procedure
  • Online Application for Biometric Authentication
  • An executive of the fund house goes to the address mentioned in the form
  • Show him your original documents and provide your biometrics
  • Your application will be submitted, and KYC will be done.

What are the documents required to do KYC?

  • KYC Form
  • Aadhar Card or Voter ID Card
  • PAN card
  • your bank passbook
  • Photo

Where to get the form for KYC?

The KYC form may be different for different places, so take the KYC from the place where you are getting KYC done.

Does KYC have to be done frequently?

Yes. This time limit is different for different financial institutions as you can now check the KYC of your digital wallet which is generally 5 to 10 years.

Will a photo be required to get the SIM card KYC done?

No, nowadays, there is Aadhar based KYC in which there is no need to give a photo.

I haven’t done KYC, but I want to invest. Can I do it without KYC?

No, you need to complete your KYC before investing for the first time.

How much time is required for KYC verification?

It takes less than a day to do KYC verification online. However, KYC verification offline may take up to 7 days.

How much is the fee for KYC verification?

You will not have to pay any fee for KYC verification. It’s completely free.

Follow Seeker Times on Social media for quick updates.

और हिंदी खबरों के लिए Seeker Times Hindi को फॉलो करो| For English News, follow Seeker Times.

Leave a Comment

Ather 450X Gen 3 electric scooter, Advance features, range, and prices Best Rachel Green Hairstyles from Friends TV Series Who Is Alexandra Daddario’s Husband? Andrew Form?? Selena Gomez’s Finest Met Gala Looks Through The Years Kim Kardashian and Pete Davidson: Romance story