KYC meaning is Know Your Customer, which is a government-initiated verification strategy implemented by the Reserve Bank of India in 2002. It involves scrutinising documents of the identity and address proof of every individual.
What are the documents required for KYC verification?
accepted documents which you require for KYC registration are –
Aadhaar card, passport, PAN details, voter ID, driver license, NREGA job card for the verification of identity
Ration card, utility bill (telephone, electricity, piped gas, post-paid mobile, and water), bank account or post office savings account statement, etc. for verification of address
In addition to the above, documents issued by public sector undertakings (PSUs), sate or central government departments and bodies (such as foreign embassies), and scheduled commercial financial institutions can also be used during KYC verification as mandated the RBI.
Why is KYC necessary?
As per the Reserve Bank of India, it is mandatory for all financial institution to collect KYC documents of their customers. The primary reason this being –
Customer identification.
Risk management.
Strict guidelines to accept and reject new customers.
Transaction monitoring.
What are the methods to complete KYC registration?
KYC registration is an important factor that financial institutions consider before approving or rejecting loan and credit card applications. Moreover, providing the relevant KYC documents is vital to apply for premium cards, such as the Bajaj RBL Bank SuperCard.
There are also other methods of completing your KYC registration online, which is also referred to as eKYC. Such methods include Aadhar based eKYC and PAN based eKYC.
