KYC is an acronym for “Know your Customer” a term used for Customer identification process. It involves making reasonable efforts to determine, the true identity and beneficial ownership of accounts, source of funds, the nature of customer’s business, reasonableness of operations in the account in relation to the customer’s business, etc which in turn helps the banks to manage their risks prudently.
The objective of the KYC guidelines is to prevent banks being used, intentionally or unintentionally by criminal elements for money laundering.   _{Your Comment}