What is the main objective of KYC guidelines followed by Banks? I- It helps prevent banks from using criminal networks. II- KYC helps the banks to communicate with clients and financial transactions. III- For KYC only AADHAR is required.

The full form of KYC is Know Your Customer. KYC is the method of a company that verifies the customer’s identity and assesses possible risks to the business relationship from criminal intentions. The name is also used to relate to the regulations on banks and anti-money laundering regulations that govern such activities. Reserve Bank of India (RBI) adopted the KYC process to avoid financial fraud, such as identity theft, money laundering and illegal transactions. Here is a required document serving as identification evidence and address proof Passport Voter ID card Driving Licence PAN card Aadhaar Card If the document you provide for identity proof does not contain details of the address, you can send another legally valid document containing details of the address such as electricity bill, telephone bill, gas bill, etc.