PNB asks customers to update KYC by Dec 12 — Know the process here

KYC is a term used for customer identification process. It is a process by which banks obtain information about the identity and address of the customers while establishing an account-based relationship or while dealing with the individual who is a beneficial owner, authorised signatory or the power of attorney holder related to any legal entity.

It involves making reasonable efforts to determine, the true identity and beneficial ownership of accounts, source of funds, financial status & nature of customer’s business, reasonableness of operations in the account in relation to the customer’s overall profile, etc. which in turn helps the banks to manage their risks prudently.

The purpose of KYC policy is to put in place customer identification procedures for opening of accounts and monitoring transactions in the accounts for detection of transactions of suspicious nature.