What is KYC, KYC full form

The full form of KYC is Know Your Customer . KYC is a process of verification of any person. From which the employer or service provider gets complete information about their clients. Because providing any service to someone without identity verification can be risky. What is KYC?

KYC is a very common word about which people often get to hear. But when KYC is asked from such a person. One who does not have any idea about KYC, then he has to face a lot of problems. So if you do not even know what KYC is, then this post is for you only.

What is KYC

There is a process of self verification through KYC document. In which such a document is asked by the customer for KYC from the service provider. Which verify that it is you and want to start, resume that service etc.

KYC can be sought anywhere like online account opening, due to technology many tasks can be done from home. For which KYC is asked from us and after that we are able to use that service. Then whether it is to open a bank account or any other task.

And KYC is also asked for many offline tasks.

Because even if you have already done KYC, but if you have not used your bank account for a long time. So it is temporarily closed, for which we have to give KYC to start again. For which we have to buy KYC form. Which is available at nearby computer shops, and by allowing it, one has to attach one’s ID with it. Such as Pan card, aadhar card etc. whatever is present with you at that time.

But if it is a matter of online KYC, then we just have to enter our document number, and KYC is completed.

If any KYC is done offline, then use normally only KYC is spoken. But if KYC is done online then it is called eKYC. Even now many banks use video calls along with documents for eKYC. And also open the account by doing KYC through video call.

KYC required

The need for KYC is necessary because there is no dearth of fraudsters in the world. Even if he is in any industry, the identity of that person gets verified when KYC is done. And if any fraud is done by that person, then on the basis of those KYC it becomes very easy to reach that person.

Different types of KYC are taken according to the need at all places, in which the main ones are. Aadhaar card, pan card because these are such IDs, which are available to everyone and are valid everywhere.

What is the need for KYC in a new account

Many times when we create our account on different types of websites, we are also asked to complete KYC online or offline. So it can be a little doubtful that when KYC is asked after the bank account is closed. So why is KYC necessary when opening a new account? So it happens because whenever one has to register himself in any company or bank or anywhere else at any place. So you have to register your personal details as well, which is completed through normal KYC.

In which some of your main documents are included, and despite continuous use of many services, KYC is sought after some time. Like after four-five years or it can be less or more. And if KYC is asked anytime after opening the account, then it happens only in two conditions, the first one happens. That you have not had any transaction or any kind of activity in your account for a very long time.

So in such a situation, to activate your account again, offer re-verification has to be done. By doing this, that company gets the latest updated information about you. And in this case your verification also becomes complete.

And with the advancement of technology, the methods of doing KYC have also increased. Because earlier KYC was possible only through direct offline method. Then no matter how far the office is, you used to need to visit the office and do KYC. But due to increasing technology, most KYC can be done sitting at home. And Aadhaar card is playing an important role in this, which is OTP best KYC.

Some companies do OTP best verification for online KYC. While some companies complete verification through direct video calling. And it depends on the policies of that company that how KYC verification will be completed.

In this article you learned what is KYC and KYC full form. We hope that this information will prove useful to you.