Know Your Customer (KYC): Why It’s Crucial for Safe Investing and Hassle-Free Loans
KYC (Know Your Customer) is a process used by financial institutions to verify the identity of their customers. The objective is to confirm that the person involved in financial transactions is genuine and not involved in illicit activities like money laundering, identity theft, or fraud.In India, KYC is governed by the Prevention of Money Laundering Act, 2002 (PMLA), and is mandated by regulatory bodies like the Reserve Bank of India (RBI), SEBI, and IRDAI.