What is KYC? KYC stands for Know Your Customer. It is a process to ascertain the identity and the address of a customer by a company.
KYC is conducted to ensure that a subscriber is using a company’s services for legal purposes. KYC is also a way for different companies to know about their customers.
Nowadays, the eKYC process is also available. It helps to authenticate a person faster using Aadhaar-based verification. Let’s know more about KYC in this post!
Know Your Customer (KYC) is a process for different businesses to verify the identity of subscribers. KYC is done at the time of onboarding and on a recurring basis for existing customer bases.
What is the motive of the KYC process?
The motive of KYC is to ensure that a customer is a legal one so that a company is able to mitigate all risks related to money laundering activities. The typical KYC implementation includes:
- Customer identification via identity documents like the Aadhaar Card.
- Authentication against known parties (politically active/exposed person).
- The monitoring of transactions.
What are the types of KYC?
KYC can be conducted in three ways like online, offline and Aadhaar-based biometric authentication. There are two types of KYC modules, such as Aadhaar-based and in-person verification.
How to do KYC online?
If you want to do KYC online, you can do that after following a few easy steps and save your time and efforts. Let’s take a look:
- Land on the website of any KRA – KYC Registration Agency.
- Enter your details as per your Aadhaar Card.
- Verify details using the space where you need to enter a One-Time Password (OTP). The OTP is sent to customers’ mobile numbers. They should be registered with Aadhaar. If your mobile number is not yet registered or have changed, you can go for the updation on the UIADAI website. You should do that before going ahead with the KYC process.
- Submit your application.
- Once your details are verified with UIDAI, the KYC Registration Agency will approve your KYC.
- It is also possible to check the status of the KYC application after visiting your KRA’s portal using your PAN details.
What is the process to complete eKYC?
eKYC is nowadays possible to do. It is beneficial for both the companies offering services and customers. It is because the process is less time taking. It helps a company add customers into its base without waiting.
eKYC process is done using Aadhaar-based verification.
- You have to land on an eKYC portal and create an account.
- Once done, you will have to input your personal details.
- Now, you have to provide your Aadhaar Card number, along with the mobile number registered with the document.
- Once the eKYC verification online process is initiated, you will receive an OTP on your mobile number. It needs to be registered with your Aadhaar Card.
- You have to enter your OTP, and then your verification will be complete.
- Once your details are authenticated, you will be required to submit a self-attested copy of your Aadhaar Card.
After the completion of the eKYC process, you can check its status on the portal of your KRA agency after providing your PAN details.
Compared to the conventional KYC method, the eKYC process is evolving in India. A large number of companies do eKYC for faster verification and more.
You are now aware of the concept of the KYC, its procedure and why it’s beneficial. You can do your KYC if you want to do that afresh or update.
More or less, it is your service providers that will do that for you by asking for a few details. It will help you save time.