KYC stands for ‘Know Your Customer’. It is a process by which banks obtain information about the identity and address of the customers. Such an information back up prevents the misuse of the bank account. KYC procedure is to be completed by a customer when he is opening a bank account. Once account is opened, banks are also required to periodically update the customers’ KYC details. Higher transactions under an account need higher disclosure about the customer. Hence, the KYC norms goes up with the value of transactions. For a simple, BSBDA (Account under JDY), the level of customer information will be basic. The simplest KYC norm is there for a small account (a type of BSBDA with basic facilities and short duration). KYC norm is instrumental in the Anti-Money Laundering efforts.
