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KYC is required to open a bank account. Without this the account cannot be opened. To get KYC done, it is very important to submit necessary documents like driving license, PAN card, Aadhar card etc.
If someone has not submitted these documents before, then the bank asks him to submit these documents. In such a situation, people go to the bank and submit their documents. If KYC is not completed then the services related to the account stop. Even in government schemes, one cannot get benefits if there is no KYC. So we are going to tell you why it is important to get KYC done.
What does KYC mean?
Full form of KYC is Know Your Customer. Through this you can know about your customer. To complete the KYC process, you will have to fill the form and also attach the documents. These documents include photocopies of documents like driving license, passport, Aadhar card, voter card and PAN card.
The account you have in the bank. If the scheme is running in your name then it can be traced through documents. Through these documents, the bank and the organization running the scheme have your complete information. Apart from this, you will also have information about whether you are getting the benefits of that scheme or not.
What are the rules of KYC?
Know Your Customer (KYC) rules are the rules through which banks or related companies verify the legitimacy of their customers. Their identity, address documents and information given in the form are matched. Services are provided to customers only after all the information matches. If the information given does not match then companies or banks do not provide services to such people.
Through KYC, banks find out whether the customer is involved in any illegal activities or not. Also, ensuring that no unauthorized transactions like money laundering or terrorist funding are taking place from their account. Banks have all the information about the financial transactions of the customer.
There may be a need to get KYC done again.
In many cases, some documents related to KYC of people are incomplete. In such cases, they do not stop receiving services. However, they are informed by the bank to complete KYC again. The documents which were not submitted at the time of opening the account or taking the scheme, will have to be submitted again. If this is not done then services may be stopped.