In an age of
competition and realization, where you want to hold on to every customer and
keep track of who they are and what are their aims and objective. You need to
know about a vital term KYC. And what is KYC, it is an abbreviation
used for know your customers; it is where banks and other financial institution
needs all kinds of verification about their customers' identity, their
whereabouts as a mandatory process before they could begin dealings with
them. KYC process is established to make the process of
dealing with financial issues clear from any fraud and illegal activities.
What is the process of KYC verification?
The verification of
knows your customers is designed to monitor all kinds of transactional
activities of the customers on day to day basis and if any illegal activity has
been suspected an immediate report is sent to the concerned department.
Moreover, it is inevitable to note what KYC is in banking, for the
process of opening a bank account, a mutual fund or purgation of any of your
old services with the bank require a purgation of your KYC details.
It is essential to
note that the bank can always ask for a new version of your documents even when
you have already submitted the data at the time of opening with your
relationship with the bank. It may part of up-gradation of your bank accounts
or part of the process of data collection of the existing customers.
Know your customer
bank is all about
gathering of essential data for the verification process it is not only part of
the process of KYC system but also as a part of rules and regulations when it
comes to dealing with financial issues. There is heaps of documentation that
you may be asked for, and you must submit all the data on time to get the
benefits of the services.
All documents of
identification include voter’s id, passport, driving license, PAN card and
other details. And if any of your papers contain a special mention of your
permanent address that would be accepted as your mark for reference for your
address.
What does KYC mean to empower both customers and the
organization?
The primary aim of KYC
is to empower both the customers and the organization, where the banks can
gather information about their loyal customers and made sure that all the provided
details are real. Because previously there have been instances of fraudulent
activities and money laundering through these bank account details as the
applicant has been mis-using the accounts through incorrect ids and
circumstances and in case of any mishap the banks weren’t able to trace the
identifier of the customers hence creating troubles for them as well as for the
concerned departments.