KYC means Know Your Customer and sometimes Know Your Client. KYC or KYC check is the mandatory process of identifying and verifying the client’s identity when opening an account and periodically over time. KYC, customer identification is the most critical aspect as it is the first step to better perform in the other stages of the process.
The banks should not be demanding that the customers should walk into the bank branch for verification/ to update the KYC. The RBI said customers can use registered email IDs, registered mobile numbers, ATMs, digital channels (such as online banking/internet banking, mobile application), letters, etc. to do re-KYC, without the need for a visit to the bank branch.
KYC procedures defined by banks involve all the necessary actions to ensure their customers are real, assess, and monitor risks. These client-onboarding processes help prevent and identify money laundering, terrorism financing, and other illegal corruption schemes.
Previously, some customers were told to visit branches to redo their know-your-customer formalities despite the digital re-KYC mandate by the Reserve Bank of India. Others faced technical glitches on websites and mobile applications.
