Are you also getting messages to complete your KYC and you got bored of it. Do you want to know what is KYC? Let’s read about KYC, its benefits, and how you can complete your KYC.
What is KYC
The full form of KYC is “Know Your Customer” which refers to the address verification and identity of all the clients and customers by the insurance companies, banks, and other institutions while conducting any transactions with the customers.
KYC has been made mandatory for all kinds of financial institutions, banks, and other digital payment companies by the central bank i.e. Reserve Bank of India (RBI). KYC has become important as customer identification is the most essential aspect.
For verification of the address and identity, a client of the financial service is required to submit the documents of KYC before investing in various instruments like bank accounts, fixed deposits, and mutual funds.
Why is KYC important
KYC includes all the details of the customers and clients due to which ensures that the customers are real. Nowadays It is a significant element as it helps in fighting against any financial crime, illegal corruption schemes, money laundering, and terrorism financing.
The process of KYC includes face verification, utility bills as biometric verification and proof of address, ID card verification, and document verification.
Banks have to comply with the regulations of KYC and anti-money laundering to limit fraud. In case they fail to comply, huge penalties can be applied.
Also, several non-individual customers are using various financial services such as mutual fund investment, trading, etc. But with the assistance of KYC, brokerages, banks, and financial institutions, the legal status of the individual can be verified. This includes cross-checking of the identity and address.
KYC checks are done through a reliable and independent source of data, information, or documents. Each client or customer is needed to provide credentials to prove address and identity.
Some scanned or hard copies of the documents are required during the process of KYC. Further, there are two types of documents required for the process. They are as follows:
KYC documents for Identity Proof
- The Unique Identification Number i.e. UID is required that comes with an Aadhar card. Also, a passport, voter ID, or driving license is needed.
- A pan card along with the photograph is a must.
- An essential document or identity card with the photo of the candidate. It is important to note that documents should be issued either by the Central or State Government or any Statutory or Regulatory bodies.
- Identity cards of the board of education or university like CBSE, ISC, etc.
- An identity card that is issued by any public financial institutions, scheduled commercial banks, or public sector undertaking is also valid.
- Any debit or credit card issued by the bank bearing the individual’s address or name is also considered as one of the valid documents of KYC.
KYC documents for Address Proof
- Voter’s card, driving license, passport, maintenance bill for one’s flat, or registered sale agreement of insurance.
- Bills for utilities including gas or electricity bills, telephone bills, or water consumption bills are considered important for the proof of KYC.
- Bank Account Statement
- A self-declaration provided by high or supreme court judges that further provides the candidates with the new address.
- Address proof must be issued by one of the following entities: Notary public or Multinational Foreign Bank
Types of KYC
There are two kinds of verification processes of KYC. Both types are equally convenient, simple, and good. They are as follows:
This is a verification process that can be carried out at home, online conveniently with the help of an internet connection. As the name suggests itself that one needs to upload a scanned copy of the original Aadhar card. If one desires to invest in a mutual fund, this type of KYC helps in this opportunity with up to Rs. 50,000.
In-Person KYC Verification
In-Person Verification KYC is that type of KYC which is carried out offline. In this, the customer has to visit the mutual fund house and validate their identity with the help of an aadhar card.
Also, you can call the agency of KYC registration at your home so that all the verification processes can be carried out easily at home.
Whereas various mutual fund houses provide In-person verification KYC through video calls in which the customer is needed to show their Aadhar card and other important documents. In-person verification
KYC is required when one desires to invest more in mutual funds in a year.
How to do KYC
KYC is done in three ways:
- Aadhar-based Biometric Authentication
How to do KYC online
Further, there are two ways to do KYC online either by Aadhar OTP or Aadhar-based Biometric KYC. In Aadhar OTP, it is easy to apply for KYC in minutes whereas in Aadhar-based Biometric KYC, it is done online and one of the executive KRA appears to the home or office for further verification.
Steps to do KYC online are
Step 1: Firstly, you will have to open the KRA (KYC Registration Agency) website or any fund house.
Step 2: Few KRA’s can be: CAMS, CVL, NDML, NSE, and Karvy.
Step 3: Fill in your important details which are mentioned in the Aadhar card.
Step 4: Now you will have to confirm using C where you are required to fill up OTP sent to the registered mobile number with Aadhar.
Step 5: Submit your application.
Step 6: KRA or fund house will approve your KYC, id verification is done with UIDAI.
Step 7: At last you can go through your Status of KYC request by visiting the KRA portal with the help of your PAN.
How to do KYC online through Aadhar-based Biometric
KYC can also be done through Aadhar-based biometrics. But you will have to invest up to Rs. 50,000 per year if the KYC is done online.
Steps to follow for applying KYC using Aadhar-based Biometric method
Step 1: You will have to visit the fund house or KRA.
Step 2: Then to perform online KYC, repeat the process mentioned above.
Step 3: Further request for online biometric authentication.
Step 4: An executive from the KRA visits your house or office given in the form.
Step 5: Provide him with your original documents and your biometrics.
Step 6: At the end, your application gets submitted and KYC is approved.
How to do KYC offline
There is also an option of applying for KYC through offline mode. But it takes around 7 days for the KYC to be approved by any fund house or KRA. The steps are as follows:
Step 1: Download the KYC form and fill it.
Step 2: Mention your PAN or Aadhar details.
Step 3: Visit any fund house or KRA office to submit your application.
Step 4: Further attach the proof of address and identity along with the application.
Step 5: In some cases, you will have to submit the biometrics also.
Step 6: An application number is given to you to check the status of KYC.
Paytm is a very renowned name in transferring money through online mode. Paytm also provide free KYC (know your customers) to their customers.
Paytm KYC comes with many benefits which will enhance your experience of online Payments. Without KYC you have some restrictions like you can’t pay beyond a limit.
You can’t pay every Paytm merchant. Also if you haven’t done Paytm KYC, you can’t transfer your wallet money to your bank account.
Benefits of Paytm KYC
- You can keep the balance up to Rs 1,00,000 per month. Without KYC the limit will be only Rs 10,000 per month.
- There will be no spending limit on your Paytm wallet.
- With Paytm KYC you can make payments to any other wallets or Bank accounts.
- You can open your Paytm bank saving account.
- You can add money directly to your bank account without any transaction charges from your Paytm wallet.
Documents required for Paytm KYC
For Paytm KYC, a Pan card is a must. Along with the Pan card, you should have one of the following documents (original).
- Driving license
- Voter ID
- Adhar card
How to do Paytm KYC?
There are major ways by which you can do your Paytm KYC and enjoy the benefits of full Paytm services. The ways are-:
By visiting nearby KYC center and do in-person verification (Through aadhar card)
The most simple way to do your Paytm KYC is to check the list of KYC stores near your house and get your KYC done with a Paytm agent. You can check the list of Paytm KYC centers by clicking on https://m.paytm.me/nby.
It will take hardly 30 mins to complete your KYC. Due to Covid, there would be an uncertainty of the opening of KYC stores. So it’s advised to call the KYC point agent to know the store opening status.
You can also check the Paytm KYC center through your Paytm app by following these simple steps-:
- Login to your Paytm app
- Tap on ‘ Nearby KYC to see the center lists.
By video conferencing
You can do your Paytm KYC through video conferencing too. You just have to open and log in to your Paytm app, click on KYC, and choose the video conferencing option.
After that, you have to enter your Aadhar Card number.
Then you will receive an OTP on your mobile number which is linked to your Aadhar card. After that, you have to fill in your basic details like name, age, profession, etc and tap on “proceed”
The Paytm agent will then get connect with you via video conferencing and will confirm the details. Once your verification is done it will take 3 to 4 working days for your complete KYC.
KYC without Aadhar card (nonbiometric)
You will be able to complete your KYC process by clicking on https://www.paytmbank.com/kyc/non-biometric.
Update your KYC details from your house
Are you fed up with visiting banks for KYC? If yes, you don’t have to worry about that because now you can update your KYC details from the comfort of your house, without visiting the bank.
The customers can now do their KYC by submitting their proof of address and identity to the bank. This can be done via e-mail or couriers.
The customers have to send an e-mail to the bank e-mail address. One thing you have to keep in your mind that the email from which you’re sending the KYC documents to your bank should be linked with your bank account.
You can scan and mail your KYC details to the bank via mail.
Documents required for SBI KYC
To update the KYC in SBI Bank, the customer needs to have any of the following documents-:
- Voter identity card
- Driving license
- Aadhar card
- Pan card
- Narega card
In courier services like FedEx, KYC (know your customer) is a process that confirms importer information with a brokerage or courier company.
The same is done with FedEx India. Along with the details about the importer, a photograph of forms signatory is necessary.
Documents required for FedEx KYC
These are some of the Documents which are considered in FedEx KYC-:
- Pan card
- Voter’s card
- Driving license
- Bank statement
- Ration card
- Adhar card
These are the necessary documents that are required while doing FedEx KYC. Along with them, you have to fill a KYC form which will ask for your personal information, and at the end, you have to sign a declaration with the date and place.
What is Mutual Fund KYC?
Any Bank, investment platforms, insurance firms, lending institutions, Mutual Fund companies: or any other company which provides financial services are required to check the background of the client or customer.
This is basically done to fight against any criminal activities such as Money laundering, frauds, etc. Mutual fund KYC can be completed online by investors and can also be done offline.
How can you get your Mutual Fund KYC done?
There are two ways by which you can get your KYC done-:
- Online mode
- Offline mode
How to do online KYC for mutual funds?
Step 1. Visit the offline website of KRA
Step 2. Create your account and fill in all the necessary details in the application form.
Step 3. You’re required to provide your pan card and register your mobile number.
Step 4. Upload all the documents online.
How to do offline KYC for mutual funds
Step 1. Firstly you have to download the application form of KYC from the website of CDSL.
Step 2. Enter all the necessary details and attach the documents such as I’d proof, pan card, photograph, and address proof.
Step 3. Submit your application form from any intermediary or mutual fund house according to your preference.
After finishing the process of KYC through KRA online or offline, you will receive a KYC identification number which will be shared with the investment platform of your choice which will further help you in beginning your investment.