KYC means know your customer or know your client. It is a process of verifying an individual’s identity and other particulars linked to a person.
When buying any financial services, it is mandatory. E.g. Insurance, mutual funds, Employees’ Provident fund(EPF), etc. It is declared compulsory by the government.
Previously, the process of doing KYC was tiring and slow. But now, with the entry of e-KYC, it has become easy and faster. Almost all the financial companies do provide the facility of doing e-KYC through their website.
What is e-KYC?
“It is a facility which is provided to customers for doing the entire process of KYC online.” So now, instead of physically visiting the offices, you can do the KYC at the comfort of your home.
Now KYC is centralized and it’s called C-KYC i.e. central KYC. This means you have to do KYC only once to do any transactions further with any financial entity.
Documents that are needed are proof of identity, proof of address. IPV means in-person verification has to be done.
Benefits of e-KYC:
Convenience:
Earlier the process of KYC was done physically, where an individual had to visit the office with documents. But now, due to the e-KYC process, an individual can do the process at the comfort of his home.
Easy:
The process of doing KYC has become easy as almost all financial companies provide e-KYC facility and on their respective websites, the whole process of e-KYC is mentioned. Along with it, in some cases, video is also available. So, the clarity of the process has increased.
Speed:
As the whole process has become online, now there is no need to visit physically, which has saved a good amount of time.
Safety:
Considering the current situation, we all are safest in our homes. e-KYC has helped us in increasing our safety as the process has become digital.
Efficiency:
Because of the digital process, the chances of committing errors have been reduced and efficiency has increased.
Conclusion:
For withdrawing money from your provident fund(PF) account, for withdrawing your invested amount in mutual funds, etc. in all these cases it has become mandatory. without it, you may face certain difficulties. If you don’t have a KYC, then please do it as soon as possible.
