KYC (Know Your Client) is a Reserve Bank of India-mandated document verification process that financial institutions use when you avail their services. For instance, when you open a bank account or apply for various loans such as Personal Loan, Business Loan or any other applicable loans, you need to complete KYC compliance. KYC helps financial institutions identify any risks associated with potential customers. This verifies the submitted documents to ascertain your identity, address, and financial information. If you’ve ever faced KYC documentation errors and have been unsure why, read on to get more clarity. First, let’s understand the government-approved KYC documents for banks and Non-Banking Finance Companies (NBFCs).
Documents required for KYC
As per the Reserve Bank of India, you must submit one identity and address proof document each, from the KYC documents list below.
Proof of Identity:
- PAN card
- Aadhaar card
- Passport
- Driving license
- Voter ID
- Job card issued by National Rural Employment Guarantee Act (NREGA) signed by a state government official
Proof of Address:
- Aadhaar card
- Passport
- Driving license
- Voter id
- Latest utility bills (electricity/telephone/water/gas etc)
- Rent/lease agreement
- Latest flat maintenance bill
- Ration card
- Latest three months bank statements or passbooks
Individuals residing in different cities other than the one listed as their permanent address on their documents can submit a declaration stating the same while providing KYC documentation.
Tips to keep in mind for KYC Documentation
While the documents needed for KYC are relatively simple, minute inconsistencies can delay the process. Here are a few tips for completing a seamless KYC documentation process.
- Check if your mobile number is linked to your Aadhaar card
Financial institutions have replaced conventional KYC processes with e-KYC and video-KYC in recent years. To complete these processes, you need to link your Aadhaar to your mobile number and enter the one-time password (OTP) sent to the linked mobile number to complete the verification process. If you need to comply with e-KYC documentation processes, ensure you use a good quality, audio-video-enabled device for hassle-free KYC authentication.
Unlike traditional KYC, which requires days to complete, OTP-based KYC can be completed within seconds. You can also visit your nearest Aadhaar Seva Kendra, to change your mobile number, should the need arise. - Ensure your name matches across all documents
If there is any spelling error in your name, you should rectify it at the earliest. Discrepancies in names across documents can delay the KYC process substantially. For instance, if you change your name after marriage or change your name’s spelling for any reason, you must submit the official proof of your name change to all official document-issuing entities. - Make soft copies of all KYC Documents
Once you make changes to your documents, it would be best to download them until the hard copies of your documents arrive. For example, you can download your Aadhaar card from the UIDAI website and your PAN card from the TIN-NSDL and UTIITSL websites. You can use these downloaded copies while availing of financial services, especially where e-KYC documentation is concerned, to enjoy seamless services. - Remember to link your PAN and Aadhaar
As per Section 139AA of the Income Tax Act of India, 1961, the Income Tax department has made it mandatory for individuals to link their PAN to their Aadhaar. The objective behind this mandate is to set an audit trail for the government. Both PAN and Aadhaar are mandatory for most financial transactions, including Personal Loan applications. Failure to link your PAN to Aadhaar will deem your PAN inoperative, and you could be fined as well.
Enjoy hassle-free KYC documentation with HDFC Bank’s Personal Loans
With HDFC Bank, you can apply for Personal Loans online in minutes. Our minimal documentation process ensures that you can complete KYC documentation by uploading scanned copies of your documents. As our pre-approved customers, you can enjoy instant loan disbursal within seconds as well. You can start the process by clicking here.
Click here to read more about PAN and KYC document requirements for Personal Loan.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Personal Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.