KYC Full Form: Know Your Customer
KYC full form is Know your customer or Know your Client. It used in mutual funds, in the bank, and in most of the financial sectors.
KYC means Know your customer means you know your customer along with his address. KYC Basically verifies whether your address is Genuine or not and whether you are the right person or not.
Many people say that having done KYC will have to be done in line but KYC should be done by you because it is very important if your bank is getting your KYC done from time to time, then you should know that your money is very secure.
Where It is required?
KYC needs to buy gold, shares in the share market, in buying mutual funds, in the bank, buying mutual funds online, open a d-mat account in the bank, in the stock market.
Nowadays, KYC in India done only with the Aadhaar card but sometimes more documents also needed.
To give KYC, you need three types of documents, the first one is id proof, the second one is address proof and the third one is your contact number.
Aadhar Card, PAN Card, Voter ID, Ration Card, Driving License, and Passport can also be given for KYC.
Why is it necessary to have KYC?
You must have heard that someone is getting fraudulently withdrawing money from someone else in the bank. Another third person is transferring your money to another account, KYC did stop this fraud transaction. It always needs your permission to transfer money.
In such a situation, it is a security that if your money is going out or withdraw, it is you, your address remains exactly the same and whatever you like to transfer money or withdraw, you remain the same person whom KYC is deposited, and you an original customer.
Why is KYC so important?
Suppose someone tried to transfer money from your account without your permission. If your bank will not have any KYC, then the bank won’t have any idea whether the person who transfers your money is you or not, and that bank will give permission to that person to transfer your money.
So if the money transferred by this type of action, then your money will not be secure. That’s why the bank and financial sector use the KYC process so that they also know that the customer who is doing financial transactions with them is a Genuine customer. So using this KYC, the customer gave security.