What do we need to know about KYC?

KYC is the abbreviation for ‘Know Your Customer and it is an authentication process through which the personal information of an existing customer or potential client is verified before a company or organization (mainly financial organizations) can provide services to them.

Right now, the banking and financial industry has widely implemented the KYC process to verify their customer’s identities and other industries such as telecommunications, eCommerce, etc. are following suit. To know about KYC, read more.

List of mandatory KYC documents required for NRI

1. PAN / PAN Acknowledgment / Form 60 (In the case of not having a PAN card)
2. Passport size photograph (latest)
3. OVD or Official Valid Documents (Self-attested)
4. In case the NRI’s occupation is Merchant Navy, they will have to submit a mariner’s declaration certificate or Continuous Discharge Certificate copy.

All of the above-mentioned documents need to be verified and attested by a magistrate, judge, notary public, or the Indian embassy of the country where the NRI lives.

What is OVD?

OVD is the acronym for Officially Valid Documents and it is the base for the KYC process. These documents are mainly provided by the government or its representatives. As an NRI you must produce the OVD documents if you want to get your KYC approved. To give you a clearer idea of what OVD is, we can consider the Aadhaar card which is of utmost importance to Indian citizens.

As an NRI you will be required to produce two types of OVDs. The first type is your proof of identity and the second type includes your proof of address.

The KYC documents related to your proof of your identity must include the following details:

• Your full name
• Your date of birth
• Your national identity
• Document number
• Your residential address
• A clear image of your identity
• The issue and expiry date of the document

Generally accepted KYC documents for NRI proof of identity

• Universally accepted identity cards issued by the government of the NRIs residing country
• Voter Identity card
• Passport
• Tax Identification card
• Driving license

General KYC documents accepted as proof of address for NRI

For Indian citizens, Aadhar is enough to work as the OVD of any individual but for Non-Residential Indians, they will be required to provide proof of address as part of their KYC documents. Some of the documents that can work as proof of residence for the NRI may include:

• Tax bills are issued by the respective tax authorities of the NRI’s country. (Landowner receipt, property tax bills, etc.)
• Bank statement (attested by the bank authority)
• Telephone bill, electricity bill, water bill, gas bill, etc.
• A letter from the currently employed company mentioning the current residential address of the NRI will also work as proof of residential address

In case your OVD including both your proof of address and identity documents is in an outlandish language then the documents need to be translated into the English language before you submit your KYC documents. In case the NRI also has a PoA or power of attorney holder then both the NRI and PoA will have to submit their documents for KYC.

To conclude

As a Non Residential Indian or Person of Indian Origin, you will not be able to invest or subscribe to any financial services without going through a proper KYC process, and for that, you will need to know about the list of KYC documents.

Moreover, you can also complete the KYC process digitally to save time. You will need to have a digital copy of the KYC documents to complete the same. With online KYC financial service providers will take the least amount of time to authenticate or verify your identity and measure your financial risk status before offering you their services.