Know Your Customer (KYC)

Know Your Customer (KYC) is a mandatory process used by banks, financial institutions, and other regulated entities to verify the identity and address of their customers.

It helps prevent fraud, money laundering, and misuse of financial systems.

1. Purpose of KYC

KYC is carried out to:

• Verify the identity of customers
• Prevent money laundering and illegal transactions
• Ensure transparency in financial dealings
• Comply with regulatory requirements

Without KYC, most financial services cannot be accessed.

2. Types of KYC

Physical KYC

• Submission of documents in person
• Verification done by the institution

e-KYC

• Digital verification using Aadhaar OTP or biometric
• Faster and paperless process

Video KYC (V-KYC)

• Real-time verification through video call
• Increasingly used by banks and fintech platforms

3. Documents Required for KYC

Common documents include:

• PAN Card
• Aadhaar Card
• Passport / Driving License / Voter ID
• Address proof (utility bill, bank statement, etc.)

Requirements may vary depending on the institution.

4. Where KYC is Required

KYC is mandatory for:

• Opening bank accounts
• Investing in mutual funds or securities
• Applying for loans or credit cards
• Demat and trading accounts
• Insurance policies

5. Periodic KYC Updates

• Institutions may require periodic re-KYC
• Triggered by changes in details or regulatory updates
• Non-compliance may lead to account restrictions

6. Common Mistakes

• Providing incomplete or mismatched documents
• Not updating changes in address or contact details
• Ignoring re-KYC requests
• Using incorrect PAN or identity details

Practical Insight

Most people treat KYC as a one-time formality.

It’s not.

It’s a continuous compliance requirement.

If your KYC is outdated or incorrect:

• transactions can get blocked
• accounts can be restricted
• financial activity gets disrupted

How N D Savla & Associates Can Help

At N D Savla & Associates, we help you:

• Complete and update KYC documentation correctly
• Ensure consistency across PAN, Aadhaar, and financial records
• Avoid account restrictions or compliance issues
• Assist with KYC for investments and financial transactions