What are the Documents Required for KYC?
KYC or ‘know your customer’ is a mandatory verification procedure carried out by any banks, financial institutions, and other Indian organisations with the goal of minimising illegal activities like money laundering. Since the year 2004, the Reserve Bank of India has made it illegal to allow any individual or entity to open a bank account, trading account or demat account without fulfilling the procedure for KYC. Not only is KYC verification an incredibly easy and standardized way to verify the identity of a customer, but it is also just a one-time step needed before one can carry out their financial transactions.
Essentially, to be able to carry out any financial transaction one will have to go forth with KYC. When you get your KYC verification process done, you have given the financial institution who has conducted the test information about your identity, address, and financial history. This can aid the bank in knowing that the money you chose to invest was not one so for any illegal or money laundering related purpose.
This brings us to the procedure required to carry out KYC verification. A certain list of documents required for KYC need to be secured beforehand so one can go through their KYC verification without any hiccups. Even when one is trying to invest in mutual funds for the first time, or for the first time through an organisation, they will be required to undergo the KYC verification process. This process at most will take one day after which one can go forth with their mutual funds investments. However, ensure you keep the following KYC documents handy before proceeding.