KYC stands for ‘Know Your Customer’. KYC in Banking refers to the process of verifying documents to establish the identity of a customer. It is aimed at curbing malpractices such as money laundering, financial fraud, etc., by ensuring that the transactions are authentic. Since 2004, as per the Reserve Bank of India (RBI) guidelines, all banks and financial institutions must undertake KYC verification of customers. If not done, individuals are prohibited from opening a bank account or a Demat account without fulfilling the KYC procedure for KYC. In this regard, the KYC documents list becomes important, which catalogues the officially valid documents for KYC verification.
According to the RBI, the officially valid KYC documents or OVDs for KYC checks include the following:
Job card issued by NREGA (National Rural Employment Guarantee Act 2005) with the signature of a State Government official
Aadhaar letter issued by UIDAI (Unique Identification Authority of India)
In case of minors, the applicant who would be operating the account would have to submit their ID proof.
NRIs must submit resident visa and passport copies that are duly attested by the Indian Embassy, Foreign Office, and the Notary Public.
Despite the PAN card not stating your address, you can still use it as a KYC document for ID and address proof. This is so because your address records are with the Income Tax Department, which can be easily accessed using your PAN number.
As a part of the Know Your Customer process, you have to submit essential documents to financial institutions. Known as KYC documents, these help banks verify your authenticity. Banks fix these KYC norms according to the RBI directives.
Hence, a PAN card also serves as both ID and address proof. Submit any one of these KYC documents before opening an account in the bank or any financial institution. While separate KYC documents for identity and address proof had to be provided initially, the RBI has simplified the process.
To ensure that the customers availing the services are not involved in unethical financial transactions, banks and other financial institutions require you to submit certain documents. Presenting these documents is mandatory to establish your correct identity before making any transactions. The documents required for KYC in a bank are usually the same as those for other financial institutions. To understand this better, take a look at the full KYC documents list below.
The KYC documents for opening a bank account are as follows:
Identity Proof: Aadhaar Card, Passport, Voter ID card, driving licence, NREGA card, PAN card, Photo ID Card issued by the Central/State Government/Public Financial Institutions/Scheduled Commercial Banks/Public Sector Undertakings/professional bodies.
Address Proof: Aadhaar Card, Passport, Voter ID card, driving licence, Ration Card, Utility bills, bank account statement, address proof issued by bank managers of multinational/foreign banks, scheduled commercial banks, scheduled co-operative banks, state government, central government, or any of the statutory or regulatory bodies, land or municipal tax receipt, pension documents.
Income Proof: Latest salary slips of past 3 months, ITR of past 2 years, Bank statements/ Passbook updated with details of last 6 months
Yes, an Aadhaar card is a KYC document and can be used both as proof of identity and proof of address. It is also used instead of a ration card, as address proof.
To verify your KYC documents, you can use the online or offline channels offered by your preferred bank. You can also opt for eKYC verification, wherein you would need to submit only scanned copies of the documents. You can opt for any of the KYC types as their processes are hassle-free and completely digitised.
Yes, a PAN card is a valid KYC document.
The number of documents required for KYC verification varies, but two broad sets of documents are required for KYC: proof of identity and proof of address. The documents required for KYC verification include a PAN card, Aadhaar card, passport, driver's license, voter ID, job card issued by NREGA, and more.
The documents that are not valid for KYC verification include documents that are not officially valid documents (OVDs) such as ration cards, utility bills, and documents issued by foreign governments.