For quite a few years now, it has been compulsory for every establishment to verify their business and the authenticity of their customers for the procedure to be legalized. To make this happen smoothly, the concept of KYC was introduced by the Reserve Bank of India. You may be wondering about why a KYC is so important and what KYC service provider Singapore even means. A KYC stands for Know Your Customer or Know Your Client and that is why it is something that is important when it comes to authenticating your customers. The only reason for this procedure is to know the customer’s identity and make sure that they are authentic. It’s like one of the safety measures that legal establishments are asked to take by the law.
How to register as a customer?
To register a customer’s KYC, the client or customer is asked to bring along some identity proof (for example, Aadhar card) and address proof as well. It has been compulsory to first submit all the required KYC documentation before having full access to all the functions of a financial institution such as mutual funds, bank accounts, etc. in the long run, this helps the customers because they can proudly make sure of every function of a financial institution and the institution itself can protect the organization from any unauthentic customers and that helps them save their time too.
Types of KYC
There aren’t any types of main procedure per se but there are two different ways through which you can proceed with it.
- Aadhar -based KYC: This is an online procedure for those who wish to skip their visit to any financial institution. You just need to upload a scanned aadhar card copy online.
- In-person verification KYC: As the name suggests, this verification happens in the financial institution itself.
The best part is that KYC is just a one-time, quick procedure that you don’t need to worry about at all once it is done with. One of the main reasons why this procedure takes place at every bank institution in India is to make sure that there aren’t any illegal activities, like money laundering, taking place with the help of the financial institution. Apart from India, KYC has become a concept in other countries as well. You can get a great KYC service provider Singapore whom you could find for help.