The quality of the financial services provided by the institutions has a great impact on obtaining and retaining customers. Along with bouquet of services, ease of doing business is also another critical factor. Financial institutions are always on a two-edged sword; balancing fine lines of customer services and following regulatory norms to protect themselves and their clients from illegal fraud activities. The KYC plays a major role in fighting fraud, financial crimes, and mitigating high-risk transactions.
KYC is the process of verifying the authenticity of your customer mandated by SEBI and RBI (Reserve Bank of India). All Indian financial institutions are required to verify both the identity and address of all customers who are to carry out any kind of financial transactions with them.