{"id":511,"date":"2020-12-08T14:00:00","date_gmt":"2020-12-08T14:00:00","guid":{"rendered":"https:\/\/decentro.tech\/blog\/?p=511"},"modified":"2025-09-03T07:54:47","modified_gmt":"2025-09-03T07:54:47","slug":"what-is-kyc-why-is-it-important","status":"publish","type":"post","link":"https:\/\/decentro.tech\/blog\/what-is-kyc-why-is-it-important\/","title":{"rendered":"What is KYC &#038; Why is it Important?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/decentro.tech\/blog\/what-is-kyc-why-is-it-important\/#What_is_KYC\" title=\"What is KYC?\">What is KYC?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/decentro.tech\/blog\/what-is-kyc-why-is-it-important\/#Why_is_KYC_Important\" title=\"Why is KYC Important?\">Why is KYC Important?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/decentro.tech\/blog\/what-is-kyc-why-is-it-important\/#What_is_the_Difference_between_KYB_KYCC\" title=\"What is the Difference between KYB &amp; KYCC?\">What is the Difference between KYB &amp; KYCC?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/decentro.tech\/blog\/what-is-kyc-why-is-it-important\/#When_is_KYC_Verification_Required\" title=\"When is KYC Verification Required?\">When is KYC Verification Required?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/decentro.tech\/blog\/what-is-kyc-why-is-it-important\/#How_is_KYC_done\" title=\"How is KYC done?\">How is KYC done?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/decentro.tech\/blog\/what-is-kyc-why-is-it-important\/#What_are_the_essentials_required_for_KYC\" title=\"What are the essentials required for KYC?\">What are the essentials required for KYC?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/decentro.tech\/blog\/what-is-kyc-why-is-it-important\/#What_Are_The_Different_Types_of_KYC\" title=\"What Are The Different Types of KYC?\">What Are The Different Types of KYC?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/decentro.tech\/blog\/what-is-kyc-why-is-it-important\/#Online_KYC\" title=\"Online KYC\">Online KYC<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/decentro.tech\/blog\/what-is-kyc-why-is-it-important\/#How_can_Decentro_Help_your_Business\" title=\"How can Decentro Help your Business?\">How can Decentro Help your Business?<\/a><\/li><\/ul><\/nav><\/div>\n\n<figure class=\"wp-block-image size-large featured-post-img\"><img loading=\"lazy\" width=\"854\" height=\"854\" src=\"https:\/\/decentro.tech\/blog\/wp-content\/uploads\/What-is-KYC-Why-is-it-Important-.jpg\" alt=\"\" class=\"wp-image-6227\"\/><\/figure>\n\n\n\n<p><em>Should I? Is it really necessary?<\/em><\/p>\n\n\n\n<p>The only two times I ask this question is when:<br>   1. I have to say no to a devilishly delicious chocolate cake(I know, right!)<br>   2. A visit to a bank is upcoming, or there\u2019s a cumbersome procedure awaiting me.<\/p>\n\n\n\n<p>Unlike the cake, some things cannot be bypassed. Nor, ignored.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" width=\"417\" height=\"200\" src=\"https:\/\/decentro.tech\/blog\/wp-content\/uploads\/importance-of-kyc-decentro-1.gif\" alt=\"\" class=\"wp-image-513\"\/><\/figure><\/div>\n\n\n\n<p>No, wait, hear me out. You can call me cheesy, but they serve a bigger purpose\u2014just like KYC. I bet you saw that coming from a mile away.<\/p>\n\n\n\n<p>What is KYC? What makes it an integral part of anything remotely related to Banking and finance? And why does it hold its ground firmly even after almost two decades since its inception?<\/p>\n\n\n\n<p>Let\u2019s find out. <\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What_is_KYC\"><\/span><span style=\"color:#20509e\" class=\"has-inline-color\">What is KYC?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>KYC was introduced in the US in 2001 as a part of the Patriot Law in the wake of the 9\/11 attacks on an even stronger attempt to thwart terror financing. The following year, in 2002, the Reserve Bank of India(RBI) passed the Know Your Customer guidelines, which all the banks residing in the country must comply with.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-default\"><p>KYC or Know Your Customer or Know Your Client refers to the process of collecting, verifying, and confirming the identity of any individual who transacts with a Financial Institution (FI) such as banks or insurance companies.<\/p><\/blockquote>\n\n\n\n<p>Know Your Customer consists of procedures to authenticate a person\u2019s identity through important documents such as address proof, photo IDs, and in-person verification.<\/p>\n\n\n\n<p>I was wondering what a Know Your Client form looks like.<\/p>\n\n\n\n<h4><span style=\"color:#20509e\" class=\"has-inline-color\">Sample KYC Form<\/span><\/h4>\n\n\n\n<p>A printable KYC form that you can get from banks comprises multiple sections that fully disclose your background.<\/p>\n\n\n\n<p>Here\u2019s a glimpse of a form by ICICI Bank for individuals.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" width=\"600\" height=\"848\" src=\"https:\/\/decentro.tech\/blog\/wp-content\/uploads\/sample-kyc-form-icici-bank-decentro.jpeg\" alt=\"Sample KYC Form\" class=\"wp-image-1000\"\/><figcaption><em>Sample KYC Form<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>The form consists of:<\/p>\n\n\n\n<ul><li>Identity details: including your personal information<\/li><li>Address details: including your proof of residence<\/li><li>And, a declaration about the same.<\/li><\/ul>\n\n\n\n<p>Not just limited to banks or insurance companies, remember the time you set up your PayTm account &amp; wallet?<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" width=\"300\" height=\"533\" src=\"https:\/\/decentro.tech\/blog\/wp-content\/uploads\/sample-kyc-form-paytm-decentro.png\" alt=\"Complete KYC Screen\" class=\"wp-image-515\"\/><figcaption><em>Source:&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/economictimes.indiatimes.com\/wealth\/spend\/how-to-complete-full-kyc-for-paytm-sodexo-and-other-pre-paid-instruments-e-wallets\/articleshow\/63009207.cms?from=mdr\" target=\"_blank\">Economic Times<\/a><\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>Minimum KYC verification would help you get started using the e-wallet. However, if you\u2019re talking about big money, you must go through the complete KYC process.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Why_is_KYC_Important\"><\/span><span style=\"color:#20509e\" class=\"has-inline-color\">Why is KYC Important?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If the customer is king, then you should know your customer [king!]. The process could be time-consuming and a tad exhaustive. So, the need is to make sure that this KYC process is reliable and effective as it plays a significant role when it comes to dealing with money. <\/p>\n\n\n\n<p>Especially in these two laws:<\/p>\n\n\n\n<ol><li>AML: Anti-money Laundering Law<\/li><li>TF: Terrorist Financing<\/li><\/ol>\n\n\n\n<p>A financial institution requires a method to ensure that the individuals or entities it transacts with don\u2019t deal with black money, are involved with terrorist financing, or aren\u2019t caught up in suspicious financial transactions and fraudulent schemes.<\/p>\n\n\n\n<p><a href=\"https:\/\/decentro.tech\/products\/kyc-onboarding\/\" target=\"_blank\" rel=\"noreferrer noopener\">Complying with KYC<\/a> is the means to combat money laundering schemes and ensure an account holder is genuine and isn\u2019t anonymous or fictitious, i.e., the benami of an individual.<\/p>\n\n\n\n<p>If not?<\/p>\n\n\n\n<p>If a financial institution is involved in a business with a money-laundering or terrorist organization, it can get into serious trouble. Possible fines(huge ones, mind you!), damage to reputation, losses, and sanctions are some of the things that can happen. Phew, rather not!<\/p>\n\n\n\n<p>It turns out that when you\u2019re dealing with money, there\u2019s little room for error. <span class=\"has-inline-color has-dark-grey-color\">Well, strike that. There\u2019s none!<\/span><\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_Difference_between_KYB_KYCC\"><\/span><span style=\"color:#20509e\" class=\"has-inline-color\">What is the Difference between KYB &amp; KYCC?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>KYB, or Know Your Business, is not drastically different from the fundamentals of KYC. While the latter verifies individual customers&#8217; identities, the former does the same for businesses, corporations<\/strong>, or enterprises.<\/p>\n\n\n\n<p>KYB authenticates a business to ensure it\u2019s not a dummy company or shell corporation involved in anything illegal, such as money laundering, corruption of any kind, tax evasion, or terrorism, making it an integral component of AML compliance.<\/p>\n\n\n\n<p>KYB includes the verification of the following:<\/p>\n\n\n\n<ul><li>Registration details &amp; credentials<\/li><li>Location of the company<\/li><li>UBOs (Ultimate Beneficial Owners)<\/li><li>Company\u2019s annual turnover statements &amp; accounts<\/li><\/ul>\n\n\n\n<p>In addition, during the KYB process, the business is run through existing blacklists and greylists and screened to rule out any involvement, interaction, or transaction with anything illegal.<\/p>\n\n\n\n<p>A business must establish a credible identity and ensure that the companies or entities it works with have a clean background, especially those offering professional services.<\/p>\n\n\n\n<p>According to these norms, a business has to authenticate its customers\u2019 identity to ensure their funds are legal and to mitigate the potential risks involved in money laundering.<\/p>\n\n\n\n<p>Taking protection and precaution to the next level is <strong>KYCC, i.e., Knowing Your Customer\u2019s Customer.<\/strong> In KYCC, a business looks into the entities with which their customers interact and associate.<\/p>\n\n\n\n<p>The essence is the same. Both are derivatives of KYC, striving to solve the same problems persisting.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"When_is_KYC_Verification_Required\"><\/span><span style=\"color:#20509e\" class=\"has-inline-color\">When is KYC Verification Required?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are some of the instances, but not all, where Know Your Customer becomes mandatory to transact:<\/p>\n\n\n\n<ol><li>Opening a <a href=\"https:\/\/decentro.tech\/products\/accounts\/\" target=\"_blank\" rel=\"noreferrer noopener\">new bank account<\/a>, be it deposit or borrow.<\/li><li>Making investments in fixed or recurring deposits.<\/li><li>As per IRDAI (Insurance Regulatory and Development Authority India), purchasing life insurance.<\/li><li>This is for periodic renewal of KYC, as directed by RBI.<\/li><li>When there\u2019s a change in a company&#8217;s UBOs (Ultimate Beneficial Owners).<\/li><li>When company policy requires customers&#8217; full disclosure.<\/li><\/ol>\n\n\n\n<p>So yes, you\u2019ll need to go through the KYC process if you\u2019re considering having a new credit card to buy whatever showstopper is on your bucket list.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How_is_KYC_done\"><\/span><span style=\"color:#20509e\" class=\"has-inline-color\">How is KYC done?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the directive by RBI, KYC policy has 4 key elements that pillar it sturdily. These are namely:<\/p>\n\n\n\n<ol><li>Customer Acceptance Policy<\/li><li>Risk Management<\/li><li>Customer Identification Procedures (CIP)<\/li><li>Monitoring of Financial Transactions<\/li><\/ol>\n\n\n\n<h4><span style=\"color:#20509e\" class=\"has-inline-color\">Customer Acceptance Policy<\/span><\/h4>\n\n\n\n<p>CAP, or customer acceptance policy, directs all financial institutions to accept customers and begin a relationship after verifying their identity through proper diligence.<\/p>\n\n\n\n<p>According to CAP, a customer can open a new account and initiate financial transactions only after proper verification and without discrepancies in the customer&#8217;s documents and information.<\/p>\n\n\n\n<p>In addition, note that the account cannot be anonymous or under a fictitious name, e.g., a benami name. Above all, the RBI explicitly mentions that CAP cannot be used to deny financial assistance to any public member, especially the economically disadvantaged.<\/p>\n\n\n\n<h4><span style=\"color:#20509e\" class=\"has-inline-color\">Risk Management<\/span><\/h4>\n\n\n\n<p>Risk Management forms an essential element of KYC, which aims to understand customers\u2019 nature before a bank begins and nurtures an account relationship with them. Banks also face rising threats from\u00a0<a href=\"https:\/\/bestforandroid.com\/ai\/identity-document-forgery-threat\/\" target=\"_blank\" rel=\"noreferrer noopener\">identity document forgery<\/a>, which makes strong KYC risk management practices even more critical.<\/p>\n\n\n\n<p>According to this policy, a FI must segment its customers into three categories based on risk assessment: low, medium, and high.<\/p>\n\n\n\n<p>This assessment considers customers&#8217; socio-economic background, financial status, income, the nature of the business, and location.<\/p>\n\n\n\n<h4><span style=\"color:#20509e\" class=\"has-inline-color\">Customer Identification Procedures (CIP)<\/span><\/h4>\n\n\n\n<p>Customer Identification Procedures or Customer Identification Programs identify customers and verify their legal status using reliable sources such as national documents like PAN, Aadhaar, Passport, etc. It is only after CIP that a financial institution can:<\/p>\n\n\n\n<ul><li>Begin an account relationship with the customer.<\/li><li>Facilitate any international money transfer with someone who isn\u2019t an institution account holder.<\/li><\/ul>\n\n\n\n<p>If an individual acts on behalf of another(or an entity), the bank would also require due diligence &amp; verification.<\/p>\n\n\n\n<h4><span style=\"color:#20509e\" class=\"has-inline-color\">Monitoring of  Financial Transactions<\/span><\/h4>\n\n\n\n<p>Financial institutions monitor transactions or ongoing due Diligence to ensure that a customer&#8217;s transactions are as per the information they&#8217;ve furnished for CIP and have no discrepancies. As a part of this policy, a bank monitors the following types of transactions intently:<\/p>\n\n\n\n<ol><li>Large transactions that are unusual in nature, high-volume RTGS, or any complex transaction that doesn\u2019t fall within the expected activity spectrum of a customer.<\/li><li>Transactions that travel across the threshold are subscribed to an account.<\/li><li>Account turnover is unusually high compared to the balance maintained by the holder.<\/li><li>Deposits are made by third parties as cheques or drafts, which are immediately followed by a mass withdrawal.<\/li><\/ol>\n\n\n\n<p>The extent to which a Financial Institution monitors transactions depends on the risk category of an account or customer.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_essentials_required_for_KYC\"><\/span><span style=\"color:#20509e\" class=\"has-inline-color\">What are the essentials required for KYC?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once an individual declares their identity, the same has to be verified with reliable documents. Here are some required documents for your KYC process. We can broadly classify them as:<br><\/p>\n\n\n\n<ol><li>Proof of Identity <\/li><li>Address Proof<\/li><\/ol>\n\n\n\n<h4><span style=\"color:#20509e\" class=\"has-inline-color\">Identity Proof<\/span> <span style=\"color:#20509e\" class=\"has-inline-color\">Documents<\/span><\/h4>\n\n\n\n<p>The documents required for Proof of Identity would mainly consist of any legal identification document issued by the central or state government, which has the individual&#8217;s photo. Some of them include:<\/p>\n\n\n\n<ul><li>PAN card<\/li><li>UID(Unique Identification Number) includes your Passport, Aadhaar card, driving license, or voter\u2019s ID.<\/li><li>ID cards issued by affiliated educational institutions.<\/li><li>Members-only ID card issued by Bar Council.<\/li><li>ID cards issued by Professional Bodies such as ICAI, ICSI, ICWAI.<\/li><\/ul>\n\n\n\n<h4><span class=\"has-inline-color has-theme-color-one-color\">Documents for Address Proof<\/span><\/h4>\n\n\n\n<p>To produce the Proof of address, you can make use of the following documents:<\/p>\n\n\n\n<ul><li>Passport<\/li><li>Voters ID card<\/li><li>The lease agreement of the residence or registration document.<\/li><li>Copy of the insurance made for residence.<\/li><li>Maintenance or utility bills such as telephone(landline), electricity, gas, etc. Do keep in mind that these bills can\u2019t be more than 3 months old.<\/li><li>Bank statements and passbooks, which, again, aren\u2019t more than 3 months old.<\/li><\/ul>\n\n\n\n<p>In addition, you can also use proof of residence documents issued by the Government or authority, Multinational Foreign Banks, Scheduled cooperative banks, Gazetted officers, Notaries public, Parliament, or elected members of the Legislative Assembly.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What_Are_The_Different_Types_of_KYC\"><\/span><span style=\"color:#20509e\" class=\"has-inline-color\">What Are The Different Types of KYC?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>KYC has evolved from its paper form and is as tech-savvy as a baby boomer dabbling with the latest smartphone.  From the KYC Process to KYC regulations, we have gone through beats of changes to reach a place where you don\u2019t have to visit the bank (or whichever financial institution) each time there\u2019s a need for verification. <\/p>\n\n\n\n<p>Ergo, there are two types of Know your client:<\/p>\n\n\n\n<ol><li>Online KYC<\/li><li>Offline KYC<\/li><li>Video KYC<\/li><\/ol>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Online_KYC\"><\/span><span style=\"color:#20509e\" class=\"has-inline-color\">Online KYC<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Online KYC or Aadhaar-based KYC allows you to complete the verification process online using your Aadhaar card number or a national ID like PAN. The type of document accepted may vary depending on the business and the regulator by which it is governed.<\/p>\n\n\n\n<p><strong>NOTE:<\/strong> A credit limit amount might be involved when you carry out online KYC. For instance, deposits in mutual funds cannot be more than Rs. 50,000.<\/p>\n\n\n\n<p class=\"has-text-color\" style=\"color:#20509e\">Using your Aadhaar card, there are again two ways to go about it:<br>1. Aadhaar OTP<br>2. Aadhaar Biometrics<\/p>\n\n\n\n<p>The aadhaar OTP method is reasonably straightforward and can be done in minutes using your registered phone number. However, this is not categorized as a full KYC, and banks have to adopt offline modes such as Aadhaar Biometrics to complete the process. For non-banks and telcos, the UIDAI recommends Aadhaar Paperless Offline e-KYC.<\/p>\n\n\n\n<p><strong>What are the steps to carry out Aadhaar Paperless Offline e-KYC?<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td>1. Visit the UIDAI portal &#8211; <a href=\"https:\/\/resident.uidai.gov.in\/offline-kyc\">https:\/\/resident.uidai.gov.in\/offline-kyc<\/a><\/td><\/tr><tr><td>2. Enter your Aadhaar number along with the Security Code<\/td><\/tr><tr><td>3. Enter the OTP received on your registered mobile number and set up a numeric password to download the XML file<\/td><\/tr><tr><td>4. Convert the XML file to a Base 64 String and pass it on to a KYC provider to validate the digital signature<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>On the other hand, Aadhaar Biometrics would be completed after a KRA(KYC Registration Agency) executive visits your residence and performs biometric verification.<\/p>\n\n\n\n<h4><span style=\"color:#20509e\" class=\"has-inline-color\">Offline KYC<\/span><\/h4>\n\n\n\n<p>While opting for offline KYC, the credit limit gets deleted. However, it may take up to a week for the verification to be completed and approved by KRA. <\/p>\n\n\n\n<p><strong>Here\u2019re the steps to carry out KYC offline:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td>1. Download and fill out the KYC form. You can use&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/kra.ndml.in\/\" target=\"_blank\">NDML<\/a>,&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/camskra.com\/\" target=\"_blank\">CAMS<\/a>,&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.nsekra.com\/\" target=\"_blank\">NSE<\/a>,&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.karvykra.com\/\" target=\"_blank\">Karvy<\/a>, or,&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.cvlkra.com\/\" target=\"_blank\">CVL<\/a>.<\/td><\/tr><tr><td>2. Visit a KRA office nearby and submit the location.<\/td><\/tr><tr><td>3. Be sure to furnish all the supporting documents.<\/td><\/tr><tr><td>4. Safely store and track your application number to check the verification status.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h4><span style=\"color:#20509e\" class=\"has-inline-color\">Video KYC<\/span><\/h4>\n\n\n\n<p>Modern problems require even modern solutions. In addition, the verification process is making quite a stir, along with online KYC, which is video KYC. The RBI amended the KYC norms in January 2020 to push customers&#8217; digital onboarding via a video recording.<\/p>\n\n\n\n<p><strong>The below framework covers most of the regulator&#8217;s norms &amp; recommendations:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td>1. Customers verify their Aadhaar number using mobile OTP (for banks) or XML download (for non-banks)<\/td><\/tr><tr><td>2. customers click a live photo of their PAN card in the scheduled video call. The Regulated Entity verifies the PAN card via the underlying government database (NSDL)<\/td><\/tr><tr><td>3. The Regulated Entity (led by the official) checks the customer&#8217;s live location (to ensure they&#8217;re in India), matches customers&#8217; face with the respective identity document, and performs their liveliness &amp; identification checks<\/td><\/tr><tr><td>4. Other regulatory norms include storage and time stamp on the video, security measures, end-to-end encryption, and recommended use of advanced technology, including face match and AI.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Above all, video KYC will be an important pillar while initiating new account relationships, and it has superior workflows compared to offline Aadhaar verification via a biometric machine.<\/p>\n\n\n\n<p>Banks and financial institutions will save huge costs, as an official will only spend a fraction of the time verifying the authenticity of the video recorded.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How_can_Decentro_Help_your_Business\"><\/span><span style=\"color:#20509e\" class=\"has-inline-color\">How can Decentro Help your Business?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There is a long queue of customers who value time and a competitive market that can swoop in and snatch your customers away if you falter even a bit.<\/p>\n\n\n\n<p>Need we say more?<\/p>\n\n\n\n<p>We\u2019ve seen the struggle of customers stuck with legacy KYC technologies. Some of the key problems they faced were:<\/p>\n\n\n\n<ul><li>Slow onboarding processes that are highly fragmented and cumbersome<\/li><li>Little to no room for customization<\/li><li>Lengthy documentation that never seems to end and lacklustre tech updates<\/li><li>Black Swan Events that could halt operations and drown things in the darkness<\/li><li>The sheer struggle of adhering to compliance &amp; data security, the right way<\/li><\/ul>\n\n\n\n<p>If you\u2019re facing any of these, maybe it\u2019s time you explored better solutions. Hey, you\u2019re here!<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" width=\"976\" height=\"452\" src=\"https:\/\/decentro.tech\/blog\/wp-content\/uploads\/decentro-kyc-api-module.png\" alt=\"Decentro API flow\" class=\"wp-image-1004\"\/><\/figure>\n\n\n\n<p>Would you like your KYC API integration done in 2 days instead of an average of 40-60 days, and would you like a fully automated real-time onboarding?<\/p>\n\n\n\n<p>Our single API endpoint eliminates any complexities tied to KYC and customer onboarding and lays out a scalable frictionless and automated system in real time as your business grows.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" width=\"902\" height=\"327\" src=\"https:\/\/decentro.tech\/blog\/wp-content\/uploads\/how-can-decentro-help-kyc-onboarding-automation.png\" alt=\"Decentro\u2019s API Module For KYC\" class=\"wp-image-516\"\/><figcaption><em>Decentro\u2019s API Module For KYC<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>In just two years, our KYC stack has been churning solid numbers.<\/p>\n\n\n\n<p>With over 400+ Identity validations, 250+ Image recognitions, and 300+ Repository fetches happening via Decentro\u2019s KYC stack per hour, we\u2019re more than equipped to enable your verification and validation journey right from the customer onboarding to even a check-out.<\/p>\n\n\n\n<p>Save a ton of time, reduce a bunch of humdrum, and leave the effort-intensive bit to us. Oh, and don\u2019t worry about compliance and adherence\u2014we\u2019ve got you covered there, too.<\/p>\n\n\n\n<p>If you have any questions, don\u2019t hesitate to message us.<br>Let\u2019s talk, troubleshoot, and solve. Together! \ud83d\ude42<\/p>\n\n\n\n<p>Cheers!<\/p>\n\n\n\n<p>P.S. If you wish to participate in this revolution, we&#8217;re hiring! Please apply on&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/angel.co\/decentro\/jobs\" target=\"_blank\">AngelList<\/a>&nbsp;to find your next challenge.<\/p>\n\n\n\n<p><em>References:<\/em><br><a href=\"https:\/\/www.thalesgroup.com\/en\/markets\/digital-identity-and-security\/banking-payment\/issuance\/id-verification\/know-your-customer\">Thales Group<\/a><br><a href=\"https:\/\/www.maxlifeinsurance.com\/blog\/tax-savings\/what-is-kyc\">Max Life Insurance<\/a><br><a href=\"https:\/\/www.trulioo.com\/blog\/kyc#mobilekyc\">Trulioo<\/a><br><a href=\"https:\/\/www.paisabazaar.com\/aadhar-card\/what-is-kyc\/\">Paisa Bazaar<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wondering what the essentials of KYC are? Here\u2019s an exhaustive guide to Know Your Customers that you shouldn&#8217;t miss.<\/p>\n","protected":false},"author":4,"featured_media":576,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[24],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Fundamentals of Know Your Customer | KYC For Your Business | Decentro<\/title>\n<meta name=\"description\" content=\"What is KYC? Why is it important for your business? Here\u2019s Decentro\u2019s guide for businesses on KYC, KYB, and CKYC in 2021. 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