What is the full form of KYC?

What is the full form of KYC?


What is the full form of KYC? Today, KYC is a word that everyone must have heard. Many types of documents are made for the citizens of the country to get their identity and now a new process has been started in KYC. The identity of any person is confirmed by a company through KYC.

When a person takes a service from an organization, it is mandatory to get KYC done. The government has started this process to prevent terrorism and many other incidents. With KYC, the person is identified as a citizen of the country and after verification, the company starts offering its services to that person.

What is KYC? How is it applied? What are the types? What documents does it take? It is mandatory for the customer to know all these things and for this special attention has been given to all these points here.

Now we will know the entire process of KYC. It is essential to know all these things before getting KYC done because if the government is taking any step then the reason and benefits behind it is very important to know and understand the citizens of the country.

What is KYC? - Full Form Of KYC


KYC is used to verify the identity and address of a customer. KYC is used in all government institutions, banks, mobile SIMs. The full form of KYC is "Know Your Customer", it is called "Identify your customer" in Hindi. In today's time, KYC is a process in which all customers have to get themselves verified by giving their identity cards. Some documents are important for KYC and all those things are mandatory in those documents:

  1. Your name

  2. Your father's name, mother's name or wife / husband's name

  3. Date of birth

  4. Full address

  5. Mobile or phone number


KYC is verified based on all these information. Some documents are very important for KYC. These documents contain all the information given above.

Documents or documents required for KYC:


What is the full form of KYC, you know, now let us know some very important documents for KYC, which are valid for KYC:

  • Aadhaar Card

  • Passport

  • Voter id

  • Pan Card

  • Driving license


All these documents are valid for KYC. But PAN card is taken as a photo ID proof but KYC is also compulsory for address proof along with photo proof.

Importance of KYC:


KYC is very important in banks and financial institutions. KYC identifies the person with the application. And by this the institutions are assured that the documents given are genuine. And this also ensures that the applicant has not cheated before. After KYC, the chances of fraud of the customer or applicant are reduced and it can be prevented from happening further.

KYC Norms by RBI:


KYC was mandated by RBI in the year 2002 for new bank accounts. But it was implemented from 1 July 2005. The norm was mandated by the KYC to prohibit money laundering and prevent terrorist financing. KYC guidelines were introduced in the year 2002 but proper implementation of them was not possible at that time. Along with this, RBI asked for some guided measures for all its bank accounts.

Types of KYC:


KYC generally consists of two parts:


Under the first part, information of the basic and identical KYC details of the investor is recorded. It is determined by the Central KYC Registry. It is also known as uniform KYC. This part is used by all registered financial intermediaries.
Additional KYC information is provided in the second part. It is demanded by financial institutions such as: Stock Broker, Mutual Fund, Depository Participant etc.

Can KYC be done for people under 18 years of age?

It is a question to consider whether KYC can be done for people below 18 years. So there is no such facility right now. But soon it will be started for people under 18 years of age.

Who are considered eligible for KYC?


According to the current procedure, all Indian citizens who are 18 years of age or older are considered eligible for KYC. KYC will be started for minors and foreign residents very soon. It will be a compulsory process for everyone at some time. Due to which many incidents and accidents will be prevented.

Mobile Number Roll for KYC:


KYC has a very large role of mobile numbers. The same mobile number can be used for KYC. If you want to change your KYC mobile number, you can call customer care service or their helpline number and get advice from them.

Does KYC require any form of payment ?


KYC does not require any form of payment. It is a free process. This is a requirement for the identity of the customer, which is not charged.

Important point:


Apart from address and photo proof, the representative will also take a photo of you from the authorized KYC Android app. According to CERSAI and RBI guidelines many details have to be given such as parents and spouse names, income related information, business etc.
According to the current procedure, only persons aged 18 years and above are eligible for KYC, plus those persons should be Indian citizens, Indian residents and tax residents of India.
KYC can be used to upgrade a wallet, open a savings account.

Advantages of completing KYC:


There are several advantages to completing KYC. You can go for verification or verification yourself. The benefits of becoming a KYC verified or verified customer are:

You can upgrade the wallet to 10,000 to 1,00,000.
There is no limit on spending with a wallet account.
You can easily transfer money to other wallet or bank account.
Paytm Payments can also open a bank savings account.
Right now the process of KYC is also very popular. It is also a KYC but is done through electronic means. The documents used in it are also the same, only their scanned photos are used. e KYC is paperless and also saves time.

Steps to KYC


To get any service or to perform a task there are some processes and some steps have to be completed to complete that process. There are some steps of KYC as well:

For this, first you have to apply. For example, one has to apply to get a mobile SIM or to open a bank account. This application can be done both online and offline.
After this, the company in which you have applied verifies your identity according to the information and documents provided by you. In all these information, your name, parent's or wife's name, date of birth, an address photo proof and your address has to be given.
According to the information given by you, the company or a bank sends your Aadhaar number to UIDAI and asks for your complete details. UIDAI (Unique Identification Authority of India) is the organization that gives the Aadhaar number and retains its full details.
The bank or company also requests UIDAI to confirm your identity. For this, UIDAI sends an OTP to the mobile number that is associated with your Aadhaar number.
You must use this OTP for your verification. As soon as you fill OTP at the designated place, you are fully verified and you can use that service. This process is completed in no time.

Methods of Aadhaar e KYC:


Aadhaar e KYC has two very important ways by which KYC of a customer can be done.

Process of OTP E-KYC. OTP eKYC
Biometric KYC process. Biometric KYC

OTP e KYC process. OTP eKYC


This is a very easy process which also saves the time of the customer and the customer can easily verify his identity by sitting at his home.

First of all, for the service for which you want to verify yourself, the company has to provide its Aadhaar number.
After this, an OTP comes on the mobile number linked to your Aadhaar card.
The OTP has to be entered at a specified place in the form, as soon as you enter that OTP your identity is verified.

Biometric Basis KYC


Biometric Aadhaar KYC is also an easy process but for this you have to give more time.

In the process of biometric verification, the customer has to go to the designated place himself. Through the biometric device one has to get his fingerprints scanned as well as the pupils of the eyes.
After this, the government matches the details given by you, if all the symptoms are the same then the KYC is completed. Fingerprints are given special importance here.
Which is the easiest way for both KYC or E KYC?
Now it comes that KYC is better or E KYC? By the way, eKYC is a great option, it has many benefits such as:

Completion of the process in a short time:


This e KYC is a simple and good process in which the customer does not have to go anywhere. Rather the customer can complete the KYC process by sitting at home and in a very short time.

Documents do not work:


In this process there is no running around for documents and papers. Your verification is completed only by OTP coming to a mobile number. Documents of any kind are not always to be kept together nor any photocopy has to be submitted.

Free of cost:


E KYC is absolutely free. When you get KYC done, there are definitely some expenses for it, such as in photocopying. But there is no such expense in E KYC and the customer does not have to come anywhere.

Autofill facility:


This is a very good option as the customer can fill his own information in it. Which also takes less time and gives more convenience to the customer. This is not possible in normal KYC and due to this many mistakes are also made.

Least mistakes


When E KYC is done, the customer fills his own information, thereby reducing the chances of making mistakes. Also, if any information has been filled incorrectly, then it can be corrected immediately. No paper or a form is wasted if there is a mistake.

Information can be given by phone, laptop or computer
In the process of this E-KYC, your information can be given using a mobile phone, computer or laptop. And very quickly the online form can be filled.

Tips


Friends, we hope what is KYC? What is its Full Form (KYC Full Form In Hindi) You must have known all this, if you have other questions in your mind then you can ask with the help of the comment box.

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