How to Get CKYC Done for Opening an FD account

 Indian banks, financial institutions, and other organizations that conduct financial transactions with customers are required to verify their clients’ identities and addresses. To accomplish this without causing undue inconvenience, the CKYC method is used. CKYC, or Know Your Customer, is a process by which a bank or other financial institution verifies an individual’s identity and address.

What is KYC?

KYC enables an institution to verify an investor’s identity and address. Before investing in various instruments such as mutual funds, fixed deposits, and bank accounts, a customer must submit his KYC. On the other hand, individuals need to do this only once when they begin investing for the first time.KYC is one method that enables banks to avoid being used for money laundering purposes.KYC was introduced in India in 2002, and the RBI made it mandatory for all banks to conduct KYC on all customers by December 2005.

How to conduct KYC?

KYC can be accomplished in three distinct ways:

• Online
• Aadhaar-based Biometric Authentication
• Offline
• How to complete a CKYC online for opening an FD account?

There are two ways to complete CKYC online – using an OTP generated by Aadhaar or using Aadhaar-based biometric CKYC. While Aadhaar OTP enables one to obtain CKYC in a matter of minutes, Aadhaar-based Biometric CKYC requires one to apply for CKYC online and have a KRA representative visit his home/office for biometric verification.

Also Read: Complete Process of Getting CKYC Done for Opening an FD account