KYC has become an essential procedure for every bank these days. If you want to open a bank account then you need to know about KYC.
KYC – It stands for Know your customer or sometimes Knows your client. It has become a mandatory process for identifying and verifying the customer or clients details when opening a bank account. In simple words, banks must know that their customers or clients are the same people who they claim to be.
There are several reasons why KYC has become a mandatory process for opening an account and they are –
- Prevent Money laundering
- Identify Money laundering
- Terrorism Financing
- Other illegal Corruption Schemes
Also, if KYC procedures are not, followed by banks or if they fail to comply with rules and regulations then heavy penalties can be on the banks.
K-Y-C is required in two areas –
- KYC-for banks – It is required by banks to open bank accounts of the customer, making an investment, fixed deposit, mutual fund accounts, and other investment purposes.
- K-Y-C for Investment/Life Insurance – It is the second area where KYC is required, it is required in this field to make sure the insurance policy purchase is being made by the real person.
- K-Y-C is also important if you want to open a Demat and stock trading account, and operate a mobile wallet.
Now the documents required for the KYC procedure are divided into two category
- Proof of Identity – These documents include
- Aadhar Number, passport, Voter ID and driving license
- Your PAN card
- Identity card or document with your photo, which is issued by any Statutory/Regulatory Authorities, Central/State Government and their Departments
- Cards issued by Scheduled Commercial Banks, Public financing Institution
- Cards Issued by colleges that are affiliated with the University
2. Proof of Address – These Documents include
- Passport, Voter ID card, Ration Card, Driving License.
- Bills such as Gas bills, electricity bills, or telephone bills.
- Bank statement(not more than 3 months old)
Also, note that if you have done your KYC then the bank may ask for documents again to periodically update the KYC records.
In India, there are two types of KYC available –
- Aadhar based KYC(eKYC)
- Offline or In-person KYC(IPV)
For Online KYC or eKYC, the procedure is –
Create your account on, the registered KYC registration Agency’s official website and fill in your details such as name, date of birth and address
Provide your Aadhaar card number, registered mobile number and verify them using OTP
Upload a self-attested copy of the e-Aadhaar after accepting the consent declaration terms for the e-KYC
For Offline KYC the process is –
You can download the KYC application form from your insurance company or bank and fill in your details
Sign and submit a physical copy of the KYC form to the relevant authorities
Attach the attested photocopies of residence proof, ID proof, and your passport size photograph with the KYC form
Now you know all the details required for your KYC to be complete. so, let us move towards top banks which provide V-KYC in India –
1. Kotak –
Founded in 2003 Kotak Mahindra Bank as known as Kotak bank has announced Video KYC to open a Kotak 811 saving account and is the very first bank in India to do so. They have started this service in alignment with Kotak’s digital-first strategy. This process is a zero-contact, completely digital and paperless KYC procedure.
2. SBI Card –
One of the oldest banks in India founded in 1955 SBI Card launched a Video KYC(VKYC) procedure for their customer which is also a zero contact and hassle-free service. In a press release, SBI Card said – “VKYC process uses techniques such as facial recognition, Dynamic Verification code, AI-enabled OCR, Live Photo Capture facial recognition, OCR, geotagging etc, mandated by RBI guidelines, making it more safe and secure than physical KYC process.”
3. ICICI –
Founded in 1994 in Vadodara, ICICI Bank, an Indian multinational banking and financial service company, last year announced the launch of its Video KYC feature. Now the retail customer can complete their KYC through video interaction. A huge step taken by them during COVID-19 for zero-contact and hassle free service.
4. YES Bank –
Established in 2004 YES bank also launched its video KYC service where customers can open their account through e – KYC and also get a virtual debit card. This is also zero contact service and customers do not need to visit a bank branch for opening their account.
5. Capital Float –
Established recently in 2013 and last year HyperVerge announced the release of Video KYC solution with capital float. This feature allows the user to remotely complete the KYC process and it takes only 2 to 5 minutes to finish. They have used AI engines to make the process augmented.
These were the top 5 banks that provide V-KYC features digitally. There are a lot more banks that provide the Video feature or their V-KYC procedure is simple but these are the top 5 among them.
Hope this helps to find the perfect bank for you, when it comes to the V-KYC procedure.