Home finance Everything You Need to Know About KYC Verification With Bajaj Finserv

Everything You Need to Know About KYC Verification With Bajaj Finserv

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what is kyc
what is kyc

Customer identification is crucial and serves an essential purpose while acquiring any financial instrument. For instance, financial institutions can effectively limit money laundering and reduce financial crime with accurate identity verification. In this regard, the Reserve Bank of India made a mandatory step of completing KYC (know your customer) to verify a borrower’s credibility.

According to the RBI’s report, during FY 2020-21, the country witnessed around 229 financial crimes every day. Moreover, the overall fraud amount accounted for is Rs. 1.38 lakh crore.

Apart from knowing about KYC briefly, individuals must know the different processes of KYC verification, documentation, and more.

Processes of KYC verification

As already stated above, KYC is a provision that allows financial institutions to verify customers’ identities and connect details with the concerned instrument. As per the prevention of money laundering act, 2002, verification of KYC is essential, which means that individuals can’t perform any transaction or avail offerings without furnishing necessary documents.

Moreover, the advantage of EKYC is another effective instrument for customers onboarding that financial institutions depend on. You may be thinking about what is EKYC and how is it processed. To answer this question, read on to know the processes– 

  • Step-wise process of E-KYC verification online

For online verification, individuals have two ways- Aadhaar OTP and Aadhaar-based biometric KYC. The former is simple and the quickest and can be completed within minutes. Here is an overview of how online KYC verification is processed – 

Step 1- At first, visit the official website of KRA

Step 2- Create your account with personal credentials

Step 3- Submit your Aadhaar number and registered contact number

Step 4- Input OTP for verification

Step 5- Create a self-attested copy of your E-Aadhaar and upload it

Step 6- Accept the terms and conditions

On the other hand, with the Aadhaar based process, there are certain steps, and they are – 

Step 1- Again; visit the official website of KRA

Step 2- Follow the KYC steps mentioned above

Step 3- Choose the option of the online biometric authentication option

Step 4- Wait for a representative to visit the address mentioned above

Step 5- Input biometric verification

Step 6- Furnish authentic documents and wait for the KYC approval

Online KYC verification can take less than 24 hours if the documents are accurate and verified, whereas the offline process consumes considerable time.

Since KYC is necessary to avail financial services, start investments or avail financial products, such as personal loans and more, it is essential to verify EKYC beforehand.

  • Process of offline KYC verification

This process also entails specific steps, but in this case, customers need to furnish a physical copy of the necessary documents. In addition, they need to submit documents, such as ID proof, residence proof, and more, on the respective website. Failing to produce these documents is one of the mistakes to avoid while applying for a personal loan.

Here are some steps to complete offline KYC verification – 

Step 1- Download or collect a KYC form from the concerned financial institution

Step 2- Fill the form carefully with authentic PAN and Aadhaar details. Also, attach the copy of the required documents with the application form

Step 3- Search for your nearest KRA and submit the form

Step 4- Besides submitting the identity proof, individuals need to go through a biometric scan

Step 5- After completing this process, individuals will receive an application number that can be used in the future to track the application status.

Verification of these details can take substantial time. However, one must note that this period differs based on the authenticity of your details filled in the application form. Hence, filling in the details carefully is crucial while applying for a personal loan.

Documentation of KYC

When it comes to KYC verification, the government follows a strict procedure and categorises them into two parts – 

Identity proof

  • PAN card
  • Aadhaar card, driving license, passport
  • ID card with photo certified by Central/ State/Statutory/Regulatory body
  • ID card verified by public service of financial institutions
  • ID card certified by affiliated colleges or universities

Address proof

  • Ration card, Voter ID, passport, insurance, etc.
  • Utility bills
  • Financial statements
  • Residence proof verified by notary public, parliament, gazetted officer, etc.

Apart from noting the list of documents required for KYC verification, individuals must also know about the important documents required while applying for a personal loan.

To ensure a hassle-free KYC verification process, individuals can approach leading financiers like Bajaj Finserv and complete it without any complication. Besides, they also extend pre-approved loan offers on a wide range of financial products, such as personal loans, business loans, credit cards, etc. Such offers significantly expedite the loaning procedure and reduce the hassle of extensive documentation. Customers can check their pre-approved offers by mentioning their essential credentials.

Therefore, make sure to verify your KYC before proceeding with any financial service or transaction to avoid discrepancies in the long run.

Read Also: E KYC ONLINE – MEANING, PROCESS & DOCUMENTS FOR E KYC

 

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