KYC, also known as Know Your Consumer is a simple process of verification that has been mandated by the Reserve Bank of India. The purpose of this is to verify the legitimacy of the consumer and prevent all kinds of financial fraud, corruption, etc. It is also a prerequisite to open demat account. Without this, it is impossible to carry out transactions and trading on an everyday basis. The consumer details required in the demat accounts usually consist of address, name, signature, etc. Apart from this, consumers also need to keep a hold of their Aadhar card, photo ID card, driver’s license, etc to carefully verify the details when the KYC account is opened. To know more about KYC and how you can simplify its process of verification, keep reading the post.
Why does KYC in the Demat account matter?
Secures Your Trading
With proper KYC verification, you will get an added layer of security in your account. With this, you can be confident that all transactions are being conducted by you. There will be no interference by other accounts.
Keeping your identity in the dark is literally impossible using KYC. Using this can help you prevent all anti-social activities like money laundering, etc.
Performs Risk Assesments
Lenders also do a risk assessment before they lend the money to the customers by simply checking the assets and history owned.
How To Verify Your KYC Online
- Log into your share market app first.
- Second, search for the update KYC section where you will update your tab, page, and section.
- Third, open the form.
- Now you will be able to see all details entered by you during registration. Make sure you’ve checked all the details, including your name, address, nomination, and account holder details, etc. Update that whenever needed.
- After this, you will submit your ID proof like a passport, aadhar card, PAN card, voter ID card, etc. You can also submit addresses like passport, driver’s license, electricity water bills, etc.
- Finally, submit your canceled check. It should have your name embossed on it. Ensure all account details and IFSC are mentioned.
- You can also use your webcam or mobile phone to confirm your details in person.
Note: The offline process of KYC takes approximately one week to complete whereas the online process is much shorter. But this can also depend on a range of factors. If there are inconsistencies, ambiguities, etc in the process of application, you will not be able to proceed.
So the offline process of KYC will take you approximately one week compared to the online registration which takes a much shorter period of time. But do note that this can depend on a whole range of factors like inconsistencies, errors, etc that can be seen in the application form. So make sure that you have filled in all the information in the correct manner. And yes, to conduct all transitions successfully, make sure you always have a proper Indian share market app, always.