Know Your Customer (“KYC”) is a standard due diligence process used by investment companies to assess investors they are conducting business with. Apart from being a legal and regulatory requirement, KYC is a good business practice as well to better understand investment objectives and suitability, and reduce risk from suspicious activities.

KYC is an important term used by businesses and refers to the process of verification of the identity of the customers and clients either before or during the start of doing business with them. Banks, digital payment companies or any kind of financial institutions are now required by the RBI norms to have their customers KYC process completed before allowing them complete access to all services.

KYC is done as a precaution against illegal activities like money laundering, bribery or corruption. It helps the government and businesses keep track of such activities or suspect them beforehand. Apart from being a legal requirement, completing the procedure will also help you gain access to many of the financial company’s premium products and get transactions done faster.