[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-638850-105":59,"doc-detail-638850-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","importance-of-kyc","Importance of KYC","","Importance of KYC outlines the Know Your Customer process used by banks to verify customer identity and prevent misuse for money laundering. It explains how identity is verified for individual and non-individual customers using documents, data, and information, including beneficial owners and authorized signatories. The guideline purpose links to RBI and FATF recommendations under AML and CFT requirements, with rules for KYC periodic refresh and procedures when customers fail to provide required information.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/importance-of-kyc/638850/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/importance-of-kyc/638850.png","ImageObject",300,407,{"name":92,"@type":93},"Dusta123","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-31","2026-10-22",true,{"@type":102,"interactionType":103,"userInteractionCount":29},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What does KYC mean and what is its main objective?","Question",{"text":112,"@type":113},"KYC stands for Know Your Customer. Its objective is to verify customer identity and help prevent banks from being used by criminal elements for money laundering, while enabling banks to understand customer financial dealings and manage risks.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How is KYC handled for individual versus non-individual customers?",{"text":117,"@type":113},"For individual customers, banks obtain identity information, address, and a recent photograph, and similar information for joint holders and mandate holders. For non-individual customers, banks obtain identification data to verify the entity’s legal status, operating address, authorized signatories, and beneficial owners, plus details on business/employment and account purpose.",{"name":119,"@type":110,"acceptedAnswer":120},"When must KYC be refreshed and what happens if a customer fails to provide KYC?",{"text":121,"@type":113},"KYC is provided at account opening and refreshed as needed, based on account conduct, changes, or fixed periodic cycles tied to customer risk category; existing customers may be asked for updated KYC for new account openings. If minimum KYC requirements are not met, banks may refuse to open an account or discontinue an existing relationship, with some flexibility for certain customer categories who cannot provide documents at opening.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},638850,1793088302,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":29,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":14,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":24},962093541925,"https://ap-avatar.wpscdn.com/davatar_085a072bc5b1113ac321206ff7593b45","Definition of KYC  \nKnow Your Customer is the process of verifying the identity of customer. The objective of KYC guidelines is to prevent banks from being used, by criminal elements for money laundering activities. It also enables banks to understand its customers and their financial dealings to serve them better and manage its risks prudently.  \nImportance of KYC  \nKYC is the means of identifying and verifying the identity of the customer through independent and reliance source of documents, data or information. For the purpose of verifying the identity of:  \n- Individual customers, bank will obtain the customer’s identity information, address and recent photograph. Similar information will also have to be provided for joint holders and mandate holders.  \n- Non-Individual customers – banks will obtain identification data to verify the legal status of the entity, operating address, the authorized signatories and beneficial owners.  \nInformation is also required on the nature of employment/business that the customer does or expects to undertake and the purpose of opening of the account with the bank.  \nPurpose  \nThe KYC guidelines have been put in place by the Reserve Bank of India in the context of the recommendations made by the Financial Action Task Force (FATF) on Anti Money Laundering (AML) standards and on Combating Financing of Terrorism (CFT) . The Prevention of Money Laundering Act requires banks, financial institutions and intermediaries to ensure that they follow certain minimum standard of KYC and AML.  \nPeriodicity of KYC refresh  \nKYC is to be provided at the time of opening a new account as well as refresh. It may be necessary to obtain additional information from existing customers based on the conduct of the account, where there are changes to the account or at fixed periodic refresh cycles based on the risk categorization of the customer. Similarly, an existing customer will be required to provide fresh KYC for new account opening to adhere to the latest applicable KYC standards.  \nContact Person in the bank  \nAs a customer of the bank, you will need to liaise with your Relationship Manager or the bank staff that initiated your account opening.  \nFailure to provide KYC  \nBanks are entitled to refuse to open an account or discontinue an existing relationship if there is failure to meet the minimum KYC requirements. However, there is flexibility provided to certain categories of customer who are unable to provide the necessary document at the time of account opening.","cbCaigWJ9jszJ06L","https://ap.wps.com/l/cbCaigWJ9jszJ06L","pdf",187519,"English","# Definition of KYC\n## Importance of KYC\n# Purpose\n## Periodicity of KYC refresh\n## Contact Person in the bank\n# Failure to provide KYC","[{\"question\":\"What does KYC mean and what is its main objective?\",\"answer\":\"KYC stands for Know Your Customer. Its objective is to verify customer identity and help prevent banks from being used by criminal elements for money laundering, while enabling banks to understand customer financial dealings and manage risks.\"},{\"question\":\"How is KYC handled for individual versus non-individual customers?\",\"answer\":\"For individual customers, banks obtain identity information, address, and a recent photograph, and similar information for joint holders and mandate holders. For non-individual customers, banks obtain identification data to verify the entity’s legal status, operating address, authorized signatories, and beneficial owners, plus details on business/employment and account purpose.\"},{\"question\":\"When must KYC be refreshed and what happens if a customer fails to provide KYC?\",\"answer\":\"KYC is provided at account opening and refreshed as needed, based on account conduct, changes, or fixed periodic cycles tied to customer risk category; existing customers may be asked for updated KYC for new account openings. If minimum KYC requirements are not met, banks may refuse to open an account or discontinue an existing relationship, with some flexibility for certain customer categories who cannot provide documents at opening.\"}]","Importance of KYC | PDF",1792700186]