The important thing that people should know in Banking Sector

KYC Posted On
Posted By Zack Barbu

Know Your Customer is a kind of process which has been following in the banking sector about the customer. This term KYC is the short form of know your customer. This is nothing but details about their customers’ address, the reason for this procedure is ensuring the services of banks, and they won’t be misused. This process will be done by the bank while customers opening their accounts and they also update it often with the reference of the customers. The things which should be included for this KYC are Aadhaar number and PAN number for the proof of their address and they must attach the recent photograph with it. This KYC is the essential one to open the account; if they didn’t complete this process the bank won’t accept their account in their bank. It is not the necessary thing to access the KYC to open each account if they once accessed the process it applies to another account. This is necessary for all cards like Debit, Credit and Smart cards. If the customer purchased DD or PO or Travellers’ cheque for nearly Rs.50,000 and above that can be issued barely by the method of debiting the people’s bank account or adjacent to their cheques.

Banks’ rules and regulations about KYC:


Generally in all banks, they required to sporadically update the records of Know Your Customer process. This is one of the parts of banking sectors’ continuing unpaid diligence on the bank accounts. So the procedure of updating the process will differ from account to account and also it depends upon the category of an account such as low, medium and high. There are some other procedures for updating the process KYC. The process of updating will differ up to the category of an account, such as they will check out the process for two years once for the high-level customers, and they will check out for eight years once for the middle-level customers and they will do the same thing for ten years for low-level customers. These procedures would be involved with the formalities generally when they opening the account. For this process, customers of Jammu and Kashmir and Assam, they should be issued some of the documents which are officially valid by the Government of India. Such are the passport, DL (Driving License), PAN card, Voter ID, Aadhaar card, a letter from NPR and also the Job card which is issued by State Government Officer.

There are some other options like if the customer is having an account in the New Delhi branch but they want to transfer the account to the Chennai branch of the same bank, there is no need for this Know Your Customer exercise for the transfer. The people who are well known about KYC must be referred to the e-KYC also which is known as Electronic Know Your Customer. The customers whoever having the Aadhar number they can only access this e-KYC. Then the Unique Identification Authority of India transfers the data of customers such as name, gender, age, photograph electronically to the bank account.

Related Post