What are the Documents Required for KYC?

Know Your Customer (KYC) is an important compliance process by the Reserve Bank of India (RBI). It is done to verify customer identity, check their risk, and adhere to Anti-Money Laundering (AML) laws. KYC verification can be carried out both online and offline. An individual needs to submit some documents to complete the KYC verification process, such as an Aadhaar card, a PAN card, etc.

In this blog, we will discuss the documents required for both online and offline KYC verification processes.

Why Do I Need to Submit Documents for KYC?

To comply with the Prevention of Money Laundering (PML) Act and rules, the RBI introduced the KYC process. It was introduced in 2004 and required every financial institution to mandatorily conduct KYC verification for all its customers. KYC document requirement was introduced to ensure that all financial transactions adhere to the anti-money laundering rules and are carried out legally.

Additionally, complying with KYC also allows the authorities to identify bank accounts that conduct malpractices, financial fraud. It also helps in tracking transactions that are linked with funding terrorism, money laundering, or any other crimes.

What are the Valid KYC Documents?

To complete the KYC process, the respective authorities may request you to provide some documents. Here is a list of the documents that are considered valid for KYC verification for residents and NRIs:

Proof of Identity

Below is a list of the documents required as proof of identity for residents as well as NRIs.

For Residents:

You need to submit any one of the following documents for KYC verification:

• Voter ID
• PAN card
• Passport
• Aadhaar card
• Driving License
• Photo ID card issued by the Central or State government entities, public financial institutions, and public sector undertakings.

For NRIs:

NRIs can submit any one of the following documents as proof of identity:

• PAN card
• Valid passport
• OCI card/PIO card (if applicable)

Proof of Address

Below is a list of the documents required as proof of address for KYC verification for residents and NRIs.

For Residents:

Submit any of the following documents as proof of address:

• Passport
• Sale deed
• Ration card
• Voter ID card
• Driving license
• Rental agreement
• A passbook or a bank statement reflecting the address
• Utility bills that are not older than one month (water bill, electricity bill, gas bill, or telephone bill)

For NRIs

NRIs can submit any of the following documents for address proof:

• Overseas Address Proof
  • Foreign driving license
  • Residence permit/ visa
  • Address the page of the passport
  • Bank statement of a foreign bank
  • Utility bills that are not older than 3 months (electricity bill, gas bill, water bill)
• Indian Address Proof (if available)
  • Voter ID
  • Utility bills
  • Aadhaar card
  • Bank account statement

What are the Types of KYC Verification Processes?

There are two types of KYC verification processes, and you can choose any one as per your convenience. Here are the types of KYC verification processes available:

Online KYC or e-KYC

The e-KYC or online KYC is a verification process that is conducted online. It is a convenient option for those who are familiar with using internet connectivity devices, like smartphones, laptops, tablets, etc. Also, useful for someone who cannot travel due to some disability, age, or health concerns.

For online KYCs, you need to upload a scanned copy of your identity and address proof or present your document on a video call (Video KYC) to complete KYC verification.

In-Person KYC

In-person KYC verification is conducted offline in person and requires visiting the financial institution. For in-person KYC, you need to visit the bank, a regulated entity, or your nearest KYC kiosk to produce your biometrics and KYC documents for verification.

Nowadays, some banks and financial institutions can send a KYC executive to your place to conduct KYC verification in person.

How to Submit KYC Documents to the KRA?

Here are the steps to follow to submit KYC documents offline:

• Download your 'KYC' application form from the website or directly collect it from the financial institution.
• Fill out the required details and visit your nearest KRA office.
• Submit the completed KYC form along with the required documents.
• Complete the biometric process (if required).

Final Thoughts

KYC verification is an important compliance process introduced to ensure compliance with the anti-money laundering rules. It helps in verifying the identity and address of individuals who engage with financial institutions. Submitting KYC documents to the KRA is a key step in the verification process.

Additionally, if you need expert assistance with understanding the KYC process, documents, or anything related to this, contact Savetaxs. Our team of experts will provide you with end-to-end guidance with the entire process and ensure satisfactory results. Connect with us right away, as we are working around the clock across the globe to provide the best quality service to our precious clients.