What are KYC documents and why is it required to be submitted?

Last Updated: Mar 09, 2021 | 94,676 Views

KYC means “Know Your Customer”. KYC is a set of documents which are required to establish the identity of a person. Generally an Identity Proof with photograph and an Address Proof are the two basic mandatory KYC documents that are required to establish one’s identity at the time of opening of a bank account, fixed deposit, mutual fund, insurance, etc.. Financial institutions may also require you to furnish Income Proof before opening a bank account, issuing a credit card or issuing an insurance policy.


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KYC full form is Know Your Customer”


KYC Document List

  • Photo Identity Proof
  • Address Proof

Nowadays, your Aadhaar Card should be enough for both Identity Proof and Address Proof, but you may still find institutions insisting and a separate ID Proof and Address Proof along with your Aadhaar Card.


Why are KYC documents required?

KYC documents along with the customer’s photograph have been made mandatory only in the recent past where fraudulent transactions, fraud accounts and money laundering had become prevalent. Thus the banks, other financial institutions, telecom companies and some government departments require these documents to establish the correct identity of a person before proceeding with any transaction. The income proof is needed to ensure that the source or money is clean.
 

Identity Proof - Document LIst

  • Aadhaar Card
  • Passport
  • PAN Card
  • Voter’s Identity Card
  • Driving License
  • Photo identity proof of Central or State government
  • Ration card with photograph
  • Letter from a recognized public authority or public servant
  • Bank Pass Book bearing photograph
  • Employee identity card of a listed company or public sector company
  • Identity card of University or board of education like ISC, CBSE, etc.
 

Address Proof - Document List

  • Passport
  • Voter’s Identity Card
  • Driving License
  • Electricity Bill, Telephone bill including mobile, landline, wireless, etc type of connections, not more than 6 months old
  • Bank Account Statement
  • Consumer Gas connection card or Gas Bill
  • Letter from any recognized public authority or public servant 
  • Credit Card Statement
  • House Purchase deed
  • Lease agreement along with last 3 months rent receipt
  • Employer’s certificate for residence proof


Income Proof - Document List

  • Income Tax Returns
  • Salary Slips
  • Bank Statement
There would be other identity and address proofs that are also accepted by different banks, financial institutions, telecom companies and government departments. The list mentioned above is some of the most common and easily available documents.

Deepak Yohannan
Deepak Yohannan is the CEO of MyInsuranceClub. He enjoys writing on Personal Finance and contributes regularly on sites like Reuters & Moneycontrol. He is a strong proponent of online insurance and is often found pointlessly babbling about it!