In order for banks to check and subsequently confirm the validity of consumers, the central bank has established a verification process called KYC, or Know Your Customer. They must submit their KYC documentation before investing in a range of financial instruments in order to confirm their identity and address.
The KYC verification procedure is essential because it makes sure that financial institutions aren't being used for any unlawful operations. With KYC online authentication and verification in place, financial regulators like banks and trading websites can deter any potentially unlawful actions. Opt for video KYC when opening a bank account because it is quick and secure.
Why KYC
In addition, a significant portion of non-individual clients uses financial services, including trading and mutual fund investing. Banks and other financial institutions, among others, have the right to use KYC to confirm an entity's legal status, including cross-checking their working address and confirming the identity of their beneficial owners.
What is the KYC process?
The process for digital KYC is given below:
Collection of information:
The gathering of the customer's personal data is the first step in the KYC process. In order to conduct financial transactions, they must fill out an online KYC registration form on their selected gateway. The applicant's due diligence will determine whether the information provided is accurate and up to date.
Uploading of evidence:
The applicant must verify the data they entered on the application with relevant papers after the information has been gathered. These records demonstrate that the earlier data submitted by the user was accurate and not made up.
Verification:
The template for the papers is found and checked against a number of criteria after the documents have been uploaded. By doing this, it is made sure that the document hasn't been altered in any manner.
Data is then taken from the documents after they have undergone validation.
Two methods exist for doing this:
The information can be easily extracted using an OCR. This allows the system to take information about the applicant directly out of documents such as proof of identification and residence. The algorithm next verifies the information's authenticity by looking for anomalies in it.
Without OCR, data extraction is possible, but the applicant must manually enter their data into the application portal. Cross-checking between the data input and the data on the uploaded documents is done by the system's IDV solution.
How does video KYC work?
You can open an account online with Aadhaar OTP-based E-KYC instead of going to a bank in person. You can then click to connect on a video call with a bank representative for an audio-video-based verification.
Final thoughts
The account will be activated to the account of your choice once Video KYC has been updated successfully. You can try the same link if there are any problems connecting. Ensure that you re-connect within three days. After then, the link stops working. Additionally, your video KYC is not complete if the verification fails. To obtain a guaranteed KYC verification, you can talk with bank officials. You can open zero balance account online instantly if you want a feature-rich savings account.
