Know-How to Check and Verify your KYC
Know your customer, or KYC, is a process mandated by the RBI for every financial institution and customer to complete before opting for any service. Keeping the increasing financial malpractices in mind, the apex bank introduced this verification process. It will help establish the legitimacy of a debtor and reduce the number of financial wrongdoings.
Keeping up with the RBI guidelines, financial institutions operating in this country has drafted a list of documents for this purpose. Following the submission of these documents and their verification, a financial service will be extended.
What is The Procedure for Checking and Verifying KYC?
There are two ways of completing the KYC document submission and verification, online and offline.
Online KYC process
Here is a step-by-step guide on e-KYC verification online –
Step 1: Accumulating necessary information is the first step in this process. However, the authenticity of these details is subject to due diligence. To start this process, individuals need to complete an online form fill-up.
Step 2: After filling out this form, applicants must upload the required documents. Here, they can scan and upload these papers to complete this process. Besides completing KYC, failing to submit these essential documents can be one of the mistakes to avoid when applying for a personal loan.
Step 3: The last step in this process is verification. These papers are then tallied against the provided information to verify their legitimacy following the document submission. This process is to check the similarity of information.
After this verification, tests are run to check whether documents are tampered. After a subsequent clearance from this process, data is extracted from the documents submitted initially. Usually, there are two main ways to complete that –
- OCR is one of the automated ways to gather these details. Here, the system will fetch the required information and then validate it to check for anomalies.
- Alternatively, one can also do it manually by entering this information in an application portal. The in-built IDV solution of this system will authenticate the details against the submitted documents to confirm their validity.
There is an offline process to complete KYC verification as well, which one should also learn about.
Offline KYC verification
The offline process of knowing your customer is similar to its online counterpart. However, one needs to submit physical copies of these documents. Following are the steps –
Step 1: Download a KYC form from the website of a preferred financial institution.
Step 2: Fill up this form with a particular focus on Aadhaar or PAN numbers and spelling. Additionally, submit a photocopy of required papers with this application form.
Step 3: Go to the nearest KRA and submit this form with ID proof.
Step 4: Alongside submitting identity proof, applicants must complete a biometric scan.
Step 5: After completing this procedure, individuals will get an application number that they can use to track their KYC verification status.
This verification procedure can be a time consuming one. The duration extends if there are errors with an application. Therefore, completing this process is vital to avoid adjournments while applying for a personal loan.
However, to manage a loan application process and save time, financiers like Bajaj Finserv provide pre-approved offers. These offers are available on credit instruments such as personal loans, business loans, credit cards, and many others. Intending debtors can now check their pre-approved offers by providing their vital contact information.
Alongside knowing the process of KYC verification, one should also learn the documents he/she needs to keep handy to save time while applying for a personal loan online.
Documents required to complete a KYC process
A point to keep in mind here is that not every government or government-registered organization that issued identity proof is suitable for this process. According to RBI guidelines, the subsequent list of papers are officially accepted for KYC authentication across this country –
- Aadhaar card
- Voter’s ID card
- Driving license
- Passport
- PAN card
Therefore, if you plan to apply for a personal loan or any other financial products, keeping these documents within reach can shorten the due process.
Finishing the KYC process without interruptions is crucial to getting any financial service. In this regard, borrowers should also be wary of the verification process of a personal loan to avoid chances of rejection.
Importance of KYC procedure
Especially within the investment industry, KYC is a standard requirement. It ensures that the financial institutions are not involved in unlawful activities, such as money laundering. With both online and offline KYC verification, financial bodies can identify illegal activities of such kind.
Besides, many customers use financial instruments like mutual funds, trading, etc. With KYC authentication, financial institutions have the authority to verify the legal identity of the customer. This verification includes checking the address and confirming the owners’ identities and authorized signatories.