Understanding KYC: Know Your Customer

KYC stands for Know Your Customer, a vital identity process used by banks for secure

transactions. KYC identifies and verifies a customer's identity before providing any banking or

financial services. The first step involves collecting personal information such as name,

address, and date of birth. In the second step,

identity documents like your Aadhaar or PAN card are verified for authenticity. Banks then assess

the customer profile to identify potential risks and prevent misuse of services. KYC helps prevent

fraud, identity theft, and money laundering, ensuring safety for everyone.

It also ensures that financial institutions follow all necessary government rules and regulations.