How to do KYC online

Here is all you need to know about what, why, when, and how to do KYC online. Check out the various details regarding KYC.

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The Reserve Bank of India (RBI) has made it compulsory for all banks to make sure the financial institutions and other organisations verify the address and identity of customers who conduct any kind of financial transactions. KYC stands for Know Your Customer, in which the bank or the financial institution verifies the identity of the customer and the address of the individual.

What is KYC?

It first started in the year 2002 in India. And the RBI made it mandatory in the year 2004 for all the banks to carry out the KYC of users by December 2005. Therefore, KYC helps to bring in the authentication of the address and identity of an investor. The first step for investing in any kind of instruments like mutual funds, fixed deposits, or bank accounts a customer should submit KYC. This happens only when the individual initiates his/her investment for the very first time.KYC helps in keeping a record so that the banks are not used for money laundering activities.

When and why is KYC needed?

The KYC is essential for making investments for the first time and banks also ask to file KYC while opening a bank account. The process of KYC helps the bank to be informed about the customer's identity, address, and financial history and to keep track of the money that is transacted or not for illegal purposes. It is also important for mutual fund investments.

Here is the step-by-step guide to doing KYC online:

Step 2: There are various forms of KRA like NDML, CAMS, Karvy, CVL and NSE Step 3: Provide the details present in your Aadhaar Card Step 4: Enter the OTP sent on the registered mobile number with Aadhaar. Step 5: Now once the application process is done. Click on submit Step 6: Once verification is completed with UIDAI, the KRA approves the KYC request. Step 7: You can cross-check the request made through the portal of the KRA using your PAN details. Read: How to use Google Pay, Phone Pay, Paytm and other UPI transactions without internet Read: Indian Railways cancels 10 trains for next three months from December 01, 2021 Read: How to apply for PAN card before the age of 18 years