A Guide to Completing the KYC Process in Banking
Financial institutions, companies, and other organizations use the Know Your Customer (KYC) process to confirm and authenticate the identity of their clients or customers in an attempt to stop identity theft, fraud, money laundering, and other illicit financing, among other things. Because financial transactions are sensitive, KYC in banking usually involves gathering and confirming consumer documents and information. Even in theUPI application, the transaction process is practical today.
Strict protection regulations implemented by banks and other financial institutions safeguard client information. In banking, KYC is required for several reasons. For example, a KYC process is needed in a zero bank account open online or applying for a credit card. Let’s know about the process of completing KYC in banking:
Why is KYC Needed at the Bank?
Banks utilize the “Know Your Customer” (KYC) procedure to confirm the identity and address of their clients. KYC must be completed when starting an account and updated regularly. It assists banks with:
Fraud prevention
Using KYC, banks can detect fraudulent activities, track individuals, and identify criminals. It also prevents users from opening accounts under false or stolen names.
Stop the laundering of money.
KYC helps keep institutions safe by preventing banks from being exploited for illicit corruption schemes, terrorism financing, and money laundering.
Recognize consumers
Banks can better manage and service their customers through KYC by better understanding their financial activities.
How to Perform KYC in Banking?
KYC verification can be done in two ways: In person or over a video call. Physical KYC verification usually includes the following:
Step 1: Connect With the Bank
You can contact customer service to check for times and availability to start the KYC procedure. Select an appropriate time and date to visit the Branch.
Step 2: Get the Necessary Documents
Collect the required paperwork before your scheduled visit.
Step 3: Visit the Bank Branch
Visit the designated bank branch on the appointed date and let the bank employees know you are there to complete the KYC procedure and that no bank account is open online. Once you have opened a zero-balance account, you can use a QR code scannerfor money transfers.
Step 4: Completion of the KYC Application Form
Bank employees will apply for KYC. The form may ask for personal facts such as name, address, phone number, occupation, and financial information.
Step 5: Submit the Necessary Paperwork
Once the application has been completed, please send it with the necessary paperwork. Bank staff members will check the documents.
Step 6: Verification Process
The Bank will conduct a verification process using the information you have given and the submitted documents.
Step 7: Validation and Finalization
The Bank will verify your KYC requirements after completing the verification procedure and send you a confirmation or acknowledgment document.
Final thoughts
Undoubtedly,the KYC Process has become an essential aspect of opening an online zero-balance account. QR payment serves as a link between the sender and recipient of money. It will become increasingly important as time goes on constantly and smoothly