KYC Compliance

Full form: Know Your Customer Compliance

Banking

KYC compliance is the ongoing process of verifying and updating customer identity. RBI mandates periodic re-KYC based on risk category: low-risk every 10 years, medium-risk every 8 years, high-risk every 2 years. Non-compliance freezes accounts.

In detail

CKYC (Central KYC) allows a single KYC record valid across all financial institutions. Once KYC is done with any SEBI-registered entity, you get a 14-digit CKYC number valid everywhere. Aadhaar-based eKYC is the fastest route -- instant, paperless.

Real-life example

🇮🇳 India example

Rohan completes KYC with Zerodha in 2018. In 2023 he opens HDFC Mutual Fund folio -- HDFC verifies via his CKYC number, no new documents needed. In 2026, bank requests re-KYC after 8 years -- update via net banking in minutes.

Frequently asked questions

What happens if I miss re-KYC? ▼

Bank accounts are frozen for transactions. Mutual fund redemptions may be blocked. Update via net banking using Aadhaar OTP to instantly restore. Do not ignore re-KYC notices.