KYC, also known as Know Your Customer, is defined as a set of services that companies use to correctly identify their customer and ensure that all transactions related to the same are risk-free.
According to the Reserve Bank of India, all financial institutions have to mandatorily carry out KYC proceedings. As per India’s Money Laundering Act 2002, all such institutions have to collect the customer’s documents and verify them for legitimacy.
What is KYC verification?
There are two ways an individual’s identity can be verified through KYC. However, it is essential to note that both methods require an Aadhar card. An individual cannot complete their KYC verification successfully if they do not have the required proof.
The two methods include the online and offline method.
The online method has the following steps:
- Access the official website of the KYC Registration Agency and create an account
- Enter your mobile number when prompted, and enter your Aadhar card number
- Enter the Aadhar card OTP you receive on your mobile number
- Self-attest your Aadhar card and upload it. Self-attestation includes downloading a printed copy of your Aadhar Card, signing it, scanning it, and uploading it to the website. On the other hand, you can also avail of online signature services.
- Once you accept the terms and conditions, your KYC verification will be complete.
There is no purely offline method of verifying the KYC. The application process starts online, so one must ensure they have an internet connection/ have access to someone who does.
- The process for KYC authentication begins the same way. Log in to the site as stated above, and complete the first step
- When you are asked for authentication, instead of clicking on the ‘OTP’ option, click on ‘Biometric Authentication.’
- Soon, an authority will visit the place of residence specified in the address form and ensure that all the details are correct. You will be required to submit your original documentation, alongside biometric proof.
- Once the official attests the information, you will have to wait awhile before your KYC request is approved
Documents required for verification
KYC documents are all the documents required to authenticate the identity of the individual in question. In a nutshell, the documents required for the process include the following:
- PAN Card
- Aadhar Card
- Photo identification, such as a voter ID card or a driver’s license
- Proof of address, such as telephone bill or electricity bill
A KYC is mandatory for every citizen of India. It is important in all sorts of financial transactions, whether it be paying through UPI or making important purchases. Additionally, it is an excellent way for an individual to prove their identity. Thus, the importance of proper KYC verification cannot be negated.