What is the full form of KYC
What is KYC
KYC stands for Know Your Customer. It is a process followed by a financial institution or an entity to collect the details to establish the identity of a client.
KYC process was introduced by Reserve Bank of India (RBI) to prevent financial frauds like money laundering, identity theft and illegal transactions.
RBI has advised the banks to follow the KYC process while opening the accounts.
It protects the customers from fraudsters who can use their name, address and forged signatures to make fraudulent transactions.
So, the customers of financial institutions like banks should provide the authentic details so that the banks could identify their customers and serve them in a better way.
KYC includes the following details:
KYC Documents required for Individuals
You are required to submit any one or two of the above documents as an identity proof and address proof.
KYC Documents required for Companies/Partnership Firms