{"id":259708,"date":"2024-02-20T13:07:15","date_gmt":"2024-02-20T13:07:15","guid":{"rendered":"https:\/\/imarticus.org\/blog\/?p=259708"},"modified":"2024-02-20T13:07:15","modified_gmt":"2024-02-20T13:07:15","slug":"kyc-norms-building-trust-and-transparency-in-financial-transactions","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/kyc-norms-building-trust-and-transparency-in-financial-transactions\/","title":{"rendered":"KYC Norms: Building Trust and Transparency in Financial Transactions"},"content":{"rendered":"

Introduction to KYC Norms<\/h2>\n

In today's digital age, where financial transactions are conducted online more than ever before, it has become crucial to establish trust and transparency in the financial sector. This is where Know Your Customer<\/strong><\/a> (KYC) norms play a vital role. In this blog, we will delve into the significance of KYC norms and how they contribute to building trust and transparency in financial transactions.<\/p>\n

Let's understand first what KYC norms are. KYC norms are a set of guidelines and procedures that financial institutions follow to identify and verify their customers' identities. These norms require individuals or organisations to provide accurate and valid information about their identity, address, date of birth, occupation, source of income, etc., when opening an account or carrying out any financial transaction. This process enables financial institutions to assess the risk associated with each customer and prevent fraudulent activities<\/span><\/a>.<\/p>\n

Significance of KYC<\/h2>\n

One might wonder why KYC is necessary when everything can be done online now. Well, the answer lies in the fact that digital platforms have also given rise to various cyber threats and risks. By implementing stringent KYC processes, financial institutions can mitigate these risks by verifying the authenticity of their customers' identities.<\/p>\n

The following pointers demonstrate the significance of KYC norms:<\/p>\n