KYC Full Form – What is KYC Registration, and How to do KYC?

KYC Full Form, What is KYC, How to Do KYC online Process using Aadhaar based Bio metric. How to do aadhaar kyc online. Aadhaar e-KYC Complete 2024 Process, KYC Meaning

KYC Full Form

KYC (Know your customer) is popular in financial institutions and business sectors. It significant process of identifying your customer and getting the crucial identity and address information. Banks use the KYC details to protect from fraud or misuse of the institute system. Financial institutes also verify finance data using KYC details. Individuals in the mutual trades, stock market, and other money-related deals should provide the KYC information for verification.

The process is conducted during account opening or when the business or bank wants to update the system. Bank customers must provide the required details to show proof of identity and address for the process. The RBI authorizes all financial-related institutions and businesses to conduct KYC check registration for all customers. Indian Banks use simple online and offline systems to receive customer KYC details. Sometimes banks request customers to update the KYC information after a period to verify information again.

What is KYC?

KYC is a unique service run by Banks and financial institutions to verify user’s identity and address details. Any customer who wishes to invest in any financial field must provide the KYC data. The process helps banks not to get involves in the money laundering business. RBI introduced the KYC system in 2002 and fully implemented it in 2004-2005.

How to Conduct KYC Process Online

The RBI allows for online and offline KYC processes to cater to all user’s preferences. The online KYC process involves Aadhar OTP and Aadhaar based bio-metric KYC. The OTP method is the fast and most preferred method. The aadhaar bio metric KYC process requires the customer to get a KRA officer to visit the home or office for the verification process.

  1. Open the KRA or KYC Registration agency website portal. Examples of KRA are NDML. CAMS, Karvy, CVL and NSE.
  2. Next, key in the Aadhaar details using the OTP code sent to your registered mobile number. Note the number must be linked to the Aadhar number.
  3. Recheck the information and click submit button.
  4. The UIDAI will authenticate the information for the KRA to approve the process.
  5. The user can check the KYC status through the same website using and PAN card.
NDMLhttps://kra.ndml.in
CAMShttps://camskra.com
Karvyhttps://www.karvykra.com
CVLhttps://www.cvlkra.com
NSEhttps://www.nsekra.com

KYC Full Form

KYC Full Form

How to Do KYC Online Process Using Aadhaar Based Biometric

An individual with online KYC verification can only transact Rs. 50,000 per year. However, with KYC’s Aadhaar based biometric process. There is no maximum limit on the transactions.

  1. Go to the KRA/fund house website portal.
  2. Enter the Aadhar details and enter the OTP code for verification.
  3. Next, send a request on the bio-metric authentication online procedure.
  4. The KRA officer will visit your house based on the address provided on the application.
  5. The user should provide the legal document and certificates.
  6. The officer will submit the information for KYC approval.

KYC Offline Process

Note the offline process takes longer to process compared to the online procedure.

  • Go to the KRA website page and download the KYC form.
  • Enter the Aadhaar details and PAN information to proceed.
  • Go to the KRA offices near you and apply.
  • The applicant should attach the identity and address documents with the application.
  • Next, the offers will take your biometric.
  • After the application process, the officer will provide an application number. Ensure to keep it for reference.

Required Documents

  • Identity proof documents: Aadhaar card, PAN number, DL, document with applicant photograph, ID cards from educational or financial institutions.
  • Address Documents: passport, utility bills, and passbook, legal documents issued by bank managers or authority figures.

FAQs

  1. Do I require to do KYC for every bank I register or investment?

    The KYC is done for the first time while registering. However, for any institution registered by SEBI, you don’t need to repeat the process.

  2. I want to invest, but I haven’t done KYC?

    Every individual who wishes to invest in any entity must do KYC. The bank has the right to update the details anytime.

  3. What is the importance of KYC?

    KYC verification is essential for banks and financial institutions. It helps curb money laundering cases, fraud, and improper misuse of the entity.

  4. KYC Full Form

    Know Your Customer (KYC)

  5. What is the meaning of KYC

    Know Your Client (KYC)