(This is a summarised and simplified version of the Reserve Bank of India's Know Your Customer guidelines. For further details, please refer to the links which are provided below.)
Q 1. What is KYC? Why is it required?
Response: KYC means "Know Your Customer". It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks' services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same.