KYC (Know Your Customer) in banking is a process in the banking and financial industry that helps institutions verify the identity of their customers. KYC stands for 'Know Your Customer,' and it is an effective way for an institution to verify and authenticate a customer’s identity. This process was introduced under the Prevention of Money Laundering Act, 2002. What KYC is and why it matters in financial services Compliance with KYC regulations are required to establish the legitimacy of a customer’s identity and identify their risk factors. Learn how KYC works. KYC Full Form: KYC (Know Your Customer) refers to the process of verifying all customers’ and clients’ identities and addresses by banks, insurance companies, and other institutions before or during transactions with their customers.
