KYC or Know Your Customer is a process through which financial institutions verify the identity and address of a customer. Nowadays, completing KYC online is crucial to avail numerous services. From opening an account to procuring financial advances, furnishing KYC details is a mandate. It is essential because by verifying a customer’s identity, it can prevent fraudulent activities, money laundering, and other services from being malpractice.
Why is KYC important?
To allow the government authorities to monitor and prevent identity theft, scams, and other illegal activities – it is vital to confirm an applicant’s identity. For this, the RBI (Reserve Bank of India) instructed all financial institutions to implement the KYC guidelines for new account openings. Be it availing a loan or a credit card, KYC verification is mandatory.
Documents required for KYC process
Take a look at the documents you need to furnish for completing KYC online procedure.
For verifying your identity
- Aadhaar card
- PAN card
- Voter ID card
- Ration card
- Driving license
For verifying your address, produce any one of the mentioned documents
- Bank account statement
- Electricity/LPG bill
- Ration card
- Some financial institutions ask for employer’s letters for verification
KYC procedure online
Although both online and office modes of KYC verification is available, the former method is most preferred. For instance, if you are applying for a Bajaj Finserv RBL Bank SuperCard, you do not need to visit the nearest branch of your preferred NBFC. Instead, you can submit the required documents online in a quick and hassle-free way.
Leading NBFCs and financial institutions have made online KYC accessible. This proves convenient as you can upload your documents from anywhere, anytime. You can now complete the KYC online process within minutes and avail the advantages of Bajaj Finserv RBL Bank credit card.
Bajaj Finserv also brings you pre-approved offers on credit cards that help you save time when availing these. These pre-approved offers are applicable on personal loans, business loans, home loans in addition to numerous other financial products. You can check out your pre-approved offer by sharing a few necessary details like your name and contact number.
Why updating KYC for a credit card is essential?
KYC ensures that the services provided by the financial bodies are not misused. This is why KYC online procedure is required, and a periodical update is a mandate. Whether it is opening a bank account or applying for a credit card online, updating KYC is essential.
Moreover, this procedure is equally important in the case of Form 16 to file IT returns. If you wonder why Form 16 is required, it certifies that TDS dedication is completed on the salary of an employee by an employer. As per the Income Tax Act, an employer must issue Form 16 as a proof of TDS deduction is completed. This is not possible if an employee does not update his/her KYC details online.
Rules regarding KYC update
During the process of updating KYC, these are carried out:
- PAN verification available with the issuing authority.
- Aadhaar card authentication.
- In case, the identification information provided in the Aadhaar card does not match current data, then it is obtained through KYC online process.
- Certified copies of Officially Valid Documents (OVDs) containing the identity and address of the applicant must be obtained.
- Applicants who are minors need to submit a recent photograph.
- Resubmitting KYC might not insist on the physical presence of the customers unless there is any sufficient reason that demands the presence of the account holder to establish their bona-fides.