KYC: How it Helps Financial Institutions to Knowing their Customer?

KYC

The Reserve Bank of India made it mandatory for all the financial institutions to implement KYC (Know Your Customer) in 2002, and it came into force on 1st July 2005. RBI issued this guideline through the section 35A of Banking Regulations Act, 1949. The objective behind this KYC implementation was to restrict money laundering and stop banking frauds. Thus, in order to eliminate this problem, awareness about what is KYC needs to be generated to keep customers safe and secure. KYC: What is it? KYC or Know Your Customer is a process…