Know Your Customer: How KYC secures foolproof financial transactions in digital era. Experts take

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KYC, or Know Your Customer, is a prerequisite process individuals must fulfill before opening a bank account. This process entails verifying the individual's identity, address, and other pertinent details. It necessitates in-person verification.

As digital transactions see exponential growth, KYC serves a crucial role in safeguarding the integrity of economic systems. “By verifying identity and assessing risk, KYC checks deter fraudsters from exploiting loopholes. Simultaneously, seamless user experiences must remain a priority - cumbersome procedures irritate customers.

Thus, leveraging technologies like AI, ML, and biometrics in KYC strikes the balance between security and convenience while also securing citizen data privacy," said Ashish Aggarwal, Director, of Acube Ventures With cyber threats on the rise, policymakers should promote innovation in paperless KYC to uphold public trust in an increasingly digital world, added Aggarwal The RBI's persistent emphasis on a rigorous compliance framework, facilitated by a robust KYC solution, underscores the necessity for businesses to prioritize a compliance-centric approach for enduring prosperity. Recently, the RBI directed card networks such as Visa and Mastercard to halt card-based commercial payments conducted by corporations and small businesses. “Such regulatory hurdles can be avoided by adhering to regulator's rules and guidelines through innovative KYC solutions.