Let us know about KYC Full Form. What is E-KYC? What is its full form, usage and benefits? These types of questions come to our mind when we first hear the name of EKYC in the bank, in the transacting companies, in apps like Phonepe, Paytm etc.
At present, it is very important to have E-KYC for every work, whether it is opening an account in a bank, investment in share market or bank loan. KYC means – Know your customer and when this process starts happening through online then it is called electronic know your customer.
That is, the process of knowing your customers electronically. Nowadays it has become a very necessary process. Through which the identity or verification of the customer can be done easily. Companies, banks and other financial institutions doing digital transactions have been mandated by RBI to do KYC of their customers before doing any necessary work. So, in today’s article, we will discuss in detail about the full form of E -KYC , what is E-KYC , its benefits, why it is important, etc.
What is e-KYC?
In the process of e-kyc, the process of KYC is done by banks and other big government and financial institutions and share market etc. to know the address, phone number, e-mail and other details of their customers.Know your customer’. Whereas when this information is taken from the customer in paper form, then it is called offline KYC and when it is done through electronic or digital medium then it is called electronic KYC or E-KYC.
KYC in India is done with the help of Aadhar card number. Due to which E-KYC here means Aadhar KYC. Any person in India can also get e-KYC done through his biometric verification (based on fingerprints, or retinal texture). In this, there is no need to submit any paper for information like name, address etc.
E-KYC Full Form
E – Electronic
K – Know
Y – Your
C – Customer
The full form of E-KYC is – Electronic – Know Your Customer . When it is done electronically, it is called electronic – Know Your Customer.
Documents required for KYC
Here I am giving you the list of documents required for KYC, but keep in mind that it is not necessary that so many documents have to be given for KYC everywhere. Rather, according to the need, the process of kyc is completed even with 1-2 documents.
- Pan Card
- Aadhar Card
- Driving License
- Voter ID Card
- Passport Size Photo
- Address Proof
- Birth certificate
- Phone Number & Email ID
Why E-KYC is necessary? Importance of e – KYC
Any bank customer, financial department etc. takes some important information from its customer. So that that person cannot do any fraud with that firm. That is, KYC is necessary so that a customer cannot commit fraud at the bank or other place.
In such a situation, all his information is taken from that customer so that he does not do any fraud in future and even if he does, he can be caught. KYC is very important for any bank or company as it reduces criminal activities.
Benefits of KYC
- This can prevent theft and fraud.
- Due to KYC, both the government and the RBI keep an eye on all types of banking transactions.
- This has helped the government to stop money laundering.
- Funding going to terrorism from KYC has come down.
- Along with this, doing KYC also helps the banks to know whether the money invested in the bank is not for illegal activities like money laundering, etc.
- KYC is also required for mutual fund investments.
How E-KYC is useful?
E-KYC is used in many places like Aadhar card, Paytm Kyc, bank, financial transactions, legal, government and administrative work etc. E-KYC is required. Let us know how it is useful.
E-KYC is mostly used to verify the identity of the person. For example necessary for identification of person in train reservation, mobile sim, etc. Through this, the authenticity of your and your father’s name is checked. In this way, E-KYC is extremely useful for personal identification.
In banking, financial transactions
You need KYC for opening an account in the bank, for transactions, share market, mutual fund investment etc. Through this, only one person can invest in his name. Every person has presence in this and fraud and black money are stopped.
In case of bank account closure
If the transaction, investment etc. has been closed on your account from the bank for any reason, then you will have to go through the process of KYC for this. Your bank account can be revived only through KYC.
In the legal process
Now the process of KYC has become necessary in the legal process to verify the claim in any property or other benefit. Finger prints, DNA matching etc. are also different from eKYC in criminal cases.
In government and administrative work
E-KYC is also necessary for any government or administrative employees or their work. For example – fingerprints of employees, or biometrics. Through this, the benefits of subsidy, EPF, insurance, pension etc. reach the right person.
With less money and documents
We do not need to collect more documents for e-KYC. For this only Aadhar card is useful. Apart from this, even if Aadhar Card is not present, you can complete the KYC process by telling its number.
Apart from this, we do not even need to spend money for this because for KYC you do not need to photocopy any more documents or get any other work done. Nor will anyone demand money from you during KYC. In such a situation, E-KYC is done with less money and less documents.
less chance of mistakes
E-KYC also reduces the chances of mistakes, whereas there can be errors in normal KYC. In E-KYC, you do not need to give your documents to any other person. You have to complete the KYC process yourself through your Aadhar Card. In this way the mistakes are less.
How to fill KYC form online?
If you want to complete your KYC verification process sitting at home, then for this we are going to tell you some easy steps below. Through which you can do KYC verification. Below we are giving you the example of SBI Bank, its process is slightly different in different places: –
1. First of all login to the official website of SBI www.onlinesbi.com
2. Now the SBI website will open in front of you. Here you have to click on ‘Login’ under the ‘Personal Banking’ option.
After this you will see ‘Continue To Login’ option in the top right corner.
3. Now you have to login with Net Banking Id by clicking on that option.
4. After logging in, you have to go to Menu. Where you have to click on ‘e-services’ option.
5. By clicking on it, you will see many options in front of you. Out of which you have to click on ‘PAN Registration’.
6. Now you have to submit by entering your ‘Profile Password’ here.
7. Now a new page will open in front of you.
8. Here you have to click on ‘Click here to register’ under PAN Registered.
9. Here you have to submit by entering your PAN Card Number.
10 As soon as you submit, you will see the option of Confirm, click on it.
11. Now an OTP will come on your registered mobile number.
12. All the details given by you will be fed as soon as you enter the OTP.
In this way your KYC process can be completed sitting at home.
EKYC Full Form: Conclusion
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In this article I have tried to give you all the important information of BC like, EKYC ka full form, why EKYC is important and what are its benefits, how to do EKYC sitting at home etc.