What is Kyc & how it's work?

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Accepted Answer

KYC stands for Know Your Customer. It is a process of verifying the identity of customers to prevent fraud and money laundering.

KYC is a mandatory process for banks, financial institutions, and other regulated entities.
It involves collecting personal information and documents from customers to verify their identity.
The collected information is then verified against government-issued identity documents like Aadhaar, PAN, passport, etc.
KYC helps in preventing financial crimes like money laundering, terrorist financing, and identity theft.
It also helps in building trust between customers and financial institutions.
For example, when opening a bank account, the customer needs to provide their KYC documents like Aadhaar, PAN, and address proof.
The bank then verifies the information and approves the account.
KYC is an ongoing process, and customers may need to update their information periodically.
Non-compliance with KYC regulations can result in penalties and legal action.

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