Know Your Customer (KYC) is a process used by banks and financial institutions to verify the identity, address, and financial details of customers before providing services.
KYC is a mandatory compliance process that helps financial institutions prevent fraud, money laundering, and illegal activities. It ensures that banks know who their customers are and can monitor transactions effectively.
In India, KYC guidelines are regulated by the Reserve Bank of India.
Failure to complete KYC may result in account restrictions or suspension.
"When you open a bank account or invest in a mutual fund, you are required to submit identity and address proof. This verification process is called KYC."