KYC is an acronym and the Full Form of KYC is Know Your Customers. It is basically the process to verify the identity and the address of the customers or clients. Many institutions like banks, insurance companies, and other financial organizations ask for KYC. The Reserve Bank of India has made it mandatory for banks and other financial institutions to do the KYC formalities before they conduct any type of transaction with their customers. The KYC process authenticates the customer’s identity and address and the authentication is done through the documents provided by the customers. You can explore the documents needed for KYC and any type of KYC Compliance comes under the Prevention of Money Laundering Act 2002.
List of KYC Document
The Government of India has mandated certain documents that can be valid documents for the KYC. You will have to present those documents to the institutions for completing the KYC process. On the other hand, your document must prove your Identity and your Address.
Proof of Identity
- Unique Identification Number (UID) such as Aadhaar, Passport, Driving license, and Voter ID card
- PAN Card
- Document with your photo, issued by any Statutory/Regulatory Authorities, Central/State Government, and their Departments.
- Identity cards issued by Scheduled Commercial Banks, Public Sector Undertakings, and Public Financial Institutions.
- Identity cards issued by Colleges, affiliated to Universities, Professional Bodies including ICAI, ICWAI, ICSI, and Bar Council to their Members
Proof of Address
- Passport, Voters Identity Card, Registered Sale or Lease Agreement of Residence, Ration Card, Driving License, Insurance Copy or Flat Maintenance bill
- Utility bills such as Landline Telephone Bills, Gas bill or Electricity bills (not more than three months old)
- Bank Account Statement or Passbook entries (not more than three months old)
- Self-declaration by the Supreme Court and High Court judges, which specify their new address
- Proof of residence issued by any of the following bodies:
- Bank Managers of Scheduled Commercial Banks
- Multinational Foreign Banks
- Scheduled Co-Operative Bank
- Elected representatives to the Legislative Assembly
- Gazetted Officer
- Notary public
- Documents issued by any Government or Statutory Authority
- Identity card or documents with an address that are issued by the Central or State Government and their Departments, Statutory or Regulatory Authorities, Scheduled Commercial Banks, Public Sector Undertakings, Public Financial Institutions, and Colleges affiliated to Professional Bodies such as ICAI, ICWAI, Bar Council and ICSI to their Members
Types of KYC in India
Basically, all the organizations have two types of the verification process and you can see them below:-
In the online KYC process, the bank or the financial institution verifies its customers digitally. You will just have to download the KYC form and fill in the necessary details related to your document. Then you will have to upload a copy of the documents you have mentioned in the form. Once you submit all the documents, the bank or the institution authenticates the customer’s details and the KYC process gets completed. The online KYC is also known as eKYC.
In the offline KYC, one of the bank’s representatives meets the person and then verifies all his documents. He can ask for a copy of the documents and then authenticates your profile. This process of KYC Verification is also known as In-Person-Verification (IPV).
How to do KYC?
- Download the KYC Form of the respective institution whether a bank or any financial institution from their official website.
- Fill in your details like your Name, Date of Birth, Address, and the details of the supporting documents.
- Attach the physical copies of the documents you have mentioned in the KYC Form.
- Make sure that copies are attested by you.
- Submit all the copies of the supporting documents with the KYC form to the institution and your KYC Process will be completed.