Learn about the different ways to update your KYC.
Know Your Client (KYC) is a policy that the Reserve Bank of India introduced in 2002 for banking and financial institutions. Today, every customer who wishes to open an account with any such institution must undergo KYC verification. In the article, you will learn about several ways to make yourself KYC Compliant.
KYC stands for Know Your Customer or Know Your Client. It is a procedure followed by banks as well as other financial institutions. The objective of KYC is to eliminate illegal activities like money laundering or terrorist financing activities. KYC enables the bank to verify the identities of potential customers by confirming their address, occupation, and other details, as required by the respective institutions.
Nowadays, the KYC process is mandatorily conducted before opening an account with any type of financial institution. To update your KYC, you need to download the KYC Application form from the Central Depository Services Limited (CDSL) website and submit it along with your ID, address proof, and passport size photo. Accepted documents include Passport, Driving License, Voters’ ID card, PAN card and Aadhaar.
If you have submitted your PAN card as your proof of identity while opening a bank account, your PAN Card would already be updated for KYC. You can check the status of your KYC compliance on the CDSL website. If your PAN Card is not updated, you can download and submit the KYC form along with a copy of your PAN Card, proof of address and passport size photo. The bank will physically verify the documents and update your PAN Card.
Another way to update your KYC is through your Aadhaar Card. A representative from the bank can visit you directly. They will scan your fingerprint using a biometric device. Submit a copy of your PAN Card and Aadhar Card. This way, your PAN details can be updated.
If you like to invest in the stock market, you need to complete KYC compliance. You must visit the SEBI website and upload your Aadhaar and Pan Card details on the KYC Registration Agency Portal. You can update your PAN Card once you verify the account through a One-Time Password (OTP) that you would receive on your Registered Mobile Number.
Aadhar Card + PAN Card + Video KYC
= Account opened!
Completing KYC compliance is in the best interest of both service providers and consumers. KYC protects financial institutions from unlawful practices. It further leads to efficiently serving customer needs.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.