How you much KYC is important in Banking and How we can do it ? answer required in 5 Lines

KYC is very important tool to know all about the customer/client.(name, age, photo, adress proof, id proof , pan details etc)

all the details are collected at a place which can be access smoothly for better functioning.

it helps in preventing money laundring also.

helps banks to serve its customers better with a better range of customised produts which fulfills the customer requirements

kyc is compulsory for stop the money laundring. The bank has keep the details of customers i.e photo id proof, resident proof and their photo which is identify the customer and to help the bank in future transactin with them. In india their are so many transaction of black money so kyc is helpful to bank in this case to stop money laundring.  

KYC is incredibly important, it helps you understand the smallest of details for your new to Bank customers (e.g. source of funds, organisation structure, shareholders, countires your cusomter trades within and in) which in turn means:

1. You can serve your customers better with a better range of products more tailored to their requirements;

2. By risk rating each new to Bank customer you will have a far better understanding of the Bank's risk profile;

3. It protects the Bank against fines and sactions;

4. It aligns board approved risk appetite with risk profile; and

5. KYC is only part of the journey. Depending on the risk profile of your customers you MUST conduct OKYC (ongoing KYC) every1,3 and5 years depending on a customers risk rating to ensure they are still within Bank risk appetite limits and that they are who they say they are and have not changed their business model to the extent that it might expose the Bank to fines or sanctions.

In India KYC has become very important to track money laundering and money layering.

The bank has to keep the details of the customers and also have a KYC no (it started with mutual funds and now essential even in opening bank accounts) assigend to eachcustomer.

Every customer has a kyc profile which includes pan ,name and address details of the bank account holder.