Today we will know KYC full form, what is the full form of KYC? What are the documents required for KYC and how to get it done? Friends KYC processes in which someone’s identity, address, and any other information related to it are verified.
Reserve Bank of India has made it mandatory for all banks, financial institutions, and shopping sites like Paytm, Flipkart, Mobiwik, Amazon to have KYC of customers for financial transactions.
Whether to open a bank account, apply for a loan, buy Mutual Funds or use a site for online transactions, KYC has been made mandatory everywhere. For KYC, you have to fill a form and submit some documents related to your identity with it.
For platforms like Paytm, Flipkart, and Mobikwik, you can submit your KYC online.
KYC Full Form
What KYC means is hidden in its full form. KYC Full Form is Know Your Customer. This means that to get the information of your customer.
KYC is a process in which the correct identification of its customer is done by a bank or institution. For which he is asked for his personal document, on the basis of which his identity is ensured.
KYC was introduced in India by the Reserve Bank of India in 2002. In 2004, it became mandatory for all banks to KYC their account holders.
The main objective of conducting KYC is to stop any kind of illegal activities like money laundering and fraud. For which the complete information of every customer is verified through KYC.
KYC is done once in the beginning by any bank or any other institution. After that, the process of KYC does not have to be repeated. However, if the bank wants to, then you can ask for the document later.
Documents required to get KYC done
When you are asked to get your KYC done online or offline, then the question comes to your mind, what are the documents required to get KYC done.
In order to submit Bank or Flipkart, Amazon, Paytm KYC, you are asked for your identity and documents related to your address proof. With KYC Form, you can submit any of the following documents related to your identity.
Voter Identity Card
You can submit any of the above-mentioned documents as your identity. If your address is also on the submitted document, then it will be considered valid as your Address Proof.
If the document does not have an address, then you will also have to submit an Address Proof for Address Verification, which can be any of them.
Electricity bill, phone, or gas bill in which your address is written.
Bank account statement
A letter containing your address with the signature of the bank manager.
Why is KYC required?
Why did any bank or other financial institution need KYC and what are its benefits? This question also remains of many people. Friends, by getting the bank KYC, the bank makes sure that whatever information you have told about yourself to the bank is correct or not.
Many times there have been cases of money fraud from the bank, which KYC plays an important role in stopping it.
Therefore every bank has made it necessary to KYC their account holders. If you have not been KYC, you can neither open an account with the bank nor be able to invest in Mutual Funds. However, once you complete the KYC process, you will not need to get KYC done every time you invest money in Mutual Funds.
When you get your KYC done, you inform your bank about the financial history along with your identity and address. Through this, the bank and financial institution are sure that the money you are putting there is not from money laundering or any illegal activities.
Question: I have not got my KYC done. But I want to invest in banks or mutual funds. Can I do this without KYC?
Answer: No, you have to complete your KYC before investing.
Question: How long does it take to get KYC verification done?
Answer: Generally KYC verification takes less than a day. However, the maximum time for KYC verification can be up to 7.
Question: When I first invested, I had my KYC done. Now I want to invest again, do I have to get my KYC done again?
Answer: If you have done your KYC this time from any institution approved by SEBI, then you will not need to do it again. KYC needs to be done in the beginning when you invest for the first time.
Friends, we hope you have this information. What is KYC, KYC Full Form? Would have liked it and you would have got the answer to all your questions related to KYC. If you have any more questions and suggestions about this, then make sure to reach them through comments. Thanks for reading!
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