Know Importance And Advantage Of KYC Process In NBFC With Bajaj Finserv

‘Know Your Customer’ or ‘Know Your Client’ is the full form of KYC. As the name says, it is a process to know the full details of an individual for money-related transactions. The KYC process verifies the identity and authentication of a financial services user. 

The Reserve Bank of India mandated the KYC process to prevent money laundering, corruption, and financing of terrorist activities in India. Each financial institution has to verify customers’ authenticity with this process.

Documents that can be used in KYC form:

1. Passport
2. Voter’s Identity Card
3. Driving License
4. Aadhaar Card
5. PAN card
6. NREGA card
7. A current photograph of the individual

What is the KYC process in NBFC?

You will find that you need to provide some personal details to get any financial instrument from any financial institution. You need to do this because customer identification is an integral part of the system. It serves many important purposes. A proper verification leads to restricting money laundering.

Importance and Advantage:

• - The process is designed in such a way that it can identify the previous financial history of an individual. It can also detect the total amount of assets owned by that individual. This feature helps banks and other financial institutions identify the risk of making a financial transaction with that individual.
• - Once the KYC is done, nobody can hide their identity. Thus, it helps limits fraud.
• - Anti-social activities such as money laundering and financing terrorist activities can be prevented.

Read Also: KYC Process: How Does The KYC Process Works?

Why is it important for Bajaj Finserv?

Bajaj Finserv mandated the KYC verification process for all customers. It helps the company gather information about its customers' previous financial activities. Several credit lines are available, such as an instant loan for low CIBIL scores and a personal loan without CIBIL. 

You need to fulfil the KYC form to take out any kind of loan. Moreover, it will show if you already have an ongoing loan with the company or not. Or if you are dealing with Bajaj Finserv EMI overdue charges. This will help the lender in deciding on sanctioning further credit to you. To know more, dial the Bajaj Finserv customer care number. Bajaj Finance helpline number is there on the internet to help you with any queries.

How does the process work?

1. The first step is the submission of documents. An applicant needs to submit the required documents to get financial services. These documents are needed to verify your identity and residence status.
2. The next step is identity verification. The financial institution will verify your document from the authorized agency based on the document submitted.
3. In the next step, your citizenship status and residential address will be checked.
4. After that, your financial condition will be checked. It will clarify how many assets and liabilities you have.
5. Transaction monitoring is the next step. Any abnormal transaction will be detected here.
6. Once all these are done, it can be said that your KYC verification is completed.

Read Also: All You Need To Know About KYC And E-KYC Verification Online