KYC Full Form in Banking

KYC Full Form in Banking

Introduction:

KYC full form in Banking is Know Your Customer. In simple words KYC refers to a process in which Banks or financial institutions verify the customers identity. 
Reserve Bank of India introduced KYC process to prevent financial frauds like money laundering, identity theft and illegal transactions. In Banks KYC is mandatory to open accounts. Now a days KYC not only implemented in banks but also by many online companies. (Demat Account Opening Companies like Zerodha)

Need of KYC

KYC is mandatory to open bank account, Demat account. You can not open any these accounts without KYC documents. As per RBI guidelines KYC process is compulsory to open bank account since 2004. As per Securities Exchange Board of India to open Demat account KYC is compulsory. KYC needed to get insurance policy and credit card.
KYC documents:

Indian Government notified the following six documents as a officially valid documents for KYC.

1) Aadhar Card
It's a 12 digit unique identification number. It's issued by Unique Identification authority of India.

2) PAN Card
It's a 10 digit alphanumeric number. It's issued by Indian Income Tax Department.

3) Voters Identity Card
It was first introduced in the year 1993. Indian citizen who's age 18 and more will get Voter ID card
It's issued by Election Commission of India. 

4) Passport
It's a travel documents issued by Government.

5) Driving Licence
It is a license issued by State Governments to drive motor vehicle on public road without any supervision.

6) NREGA Card
It is job card issued to applicant one who applied for job under Mahatma Gandhi National Rural Employment Guarantee Act.

KYC Application Form

It is include the following details
Name of the customer, Father Name, Mother Name, Date of Birth, Marital Status, Identity Proof, Address Proof, Contact No, Source of Funds etc. By KYC application form Banks and financial institutions know about the customer.

Conclusion:
Dear readers in this article you get to know about KYC full form, need of a KYC and its documents, KYC Application Form details. If you have any other details kindly comment in the post we will update.

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